factual

In the Calabrese case, what remedy are the plaintiffs seeking from Remax regarding the new terms in the franchise agreements?

Remax Franchise · 2025 FDD

Answer from 2025 FDD Document

Plaintiffs seek rescission (of the new terms in the franchise agreements) and an unspecified amount of damages, including actual damages, consequential damages, special damages, statutory damages, attorneys' fees, punitive or exemplary damages, pre- and postjudgment interest and costs. RE/MAX, LLC filed a motion to dismiss which was granted in part and denied in part on May 26, 2020. RE/MAX, LLC intends to vigorously defend against all claims.

Source: Item 3 — LITIGATION (FDD pages 21–29)

What This Means (2025 FDD)

According to Remax's 2025 Franchise Disclosure Document, in the case filed by Salvatore Calabrese, Michael Calabrese, and Related Assets LLC against RE/MAX, LLC, RE/MAX of New York, Inc., and others, the plaintiffs are seeking rescission of the new terms in the franchise agreements. Additionally, they are seeking an unspecified amount of damages. These damages include actual damages, consequential damages, special damages, statutory damages, attorneys' fees, punitive or exemplary damages, pre- and post-judgment interest, and costs.

The lawsuit, initiated on April 10, 2018, involves allegations that RE/MAX, LLC and/or RE/MAX of New York Inc. improperly refused to recognize an alleged verbal agreement to renew the franchise agreements, required the plaintiffs to renew on the then-current form of franchise agreement with allegedly less favorable terms, refused to allow plaintiffs to renew their existing form of franchise agreement, and solicited and subsequently granted competing franchise locations to certain of the sales agents who had been associated with plaintiffs in an alleged effort to secure certain of plaintiffs' business despite alleged non-compete agreements of those sales agents.

These claims include breach of the franchise agreements, breach of the duty of good faith and fair dealing, promissory estoppel, breach of contract pertaining to non-compete provisions, unfair competition/misappropriation, unjust enrichment, tortious interference with a contract and/or prospective contractual relations, fraudulent inducement, conversion/civil theft, and civil conspiracy. RE/MAX, LLC has stated its intention to vigorously defend against all claims.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.