Agency
A Texas broker enters into a 'franchise agreement' with a national real estate brand. In this arrangement:
AThe franchise automatically represents all agents' clients
BThe broker operates their business under the franchisor's brand and systems while maintaining their own independent brokerage responsibilities under Texas law✓ Correct
CTREC regulates the franchise relationship
DAgents can be licensed under the franchise brand rather than the broker
Explanation
In a real estate franchise arrangement, the broker pays fees to the franchisor for the right to use the brand, systems, and support. However, the broker remains independently responsible for all brokerage activities, trust account management, and agent supervision under Texas law. The franchise brand does not assume the broker's legal responsibilities.
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