Under the Remax promissory note, what entities are collectively referred to as the "Borrower"?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR VALUE RECEIVED, the undersigned, [entity names, states and entity types of borrower(s)] (collectively referred to as the "Borrower"), hereby promise to pay to the order of RE/MAX Integrated Regions, LLC, a Delaware limited liability company ("Holder"), the principal sum of [
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the term "Borrower" in the promissory note refers to the undersigned entity names, states, and entity types of the borrower(s). This means that whoever is signing the promissory note and receiving the funds is considered the Borrower.
Each individual or legal entity that is collectively referred to as the Borrower agrees to be jointly and severally liable for all obligations under the promissory note. This indicates that each part of the Borrower is responsible for the entire debt, not just a portion. If there are multiple entities under the Borrower, each one is fully responsible for the entire principal sum and interest.
This is a standard clause in promissory notes to ensure that the lender, RE/MAX Integrated Regions, LLC, has recourse to all parties involved in the borrowing arrangement. Prospective Remax franchisees should carefully review the promissory note and understand the implications of joint and several liability before signing.