factual

Does the 'Customer Data' definition for Remax franchises include data that Licensor derives from it?

Remax Franchise · 2025 FDD

Answer from 2025 FDD Document

The term "Customer Data" also means any products, services, uses, or works that Licensor can derive, on its own or throug

Source: Item 22 — Contracts (FDD pages 108–334)

What This Means (2025 FDD)

According to Remax's 2025 Franchise Disclosure Document, the definition of "Customer Data" includes data that the Licensor can derive from it. Specifically, the document states that the term "Customer Data" means any products, services, uses, or works that the Licensor can derive, on its own or through others, from the data provided by the customer.

This means that Remax has the right to utilize the data provided by franchisees to create new products, services, or other works. This could include analyzing customer trends, developing new marketing strategies, or creating new technology platforms. The franchisee grants Remax a nonexclusive, worldwide, royalty-free, fully paid, non-transferable license to use the Customer Data solely as necessary to provide and maintain the Offerings during the Term, and to create, distribute, and use for any lawful purpose Aggregated Statistics during and for a period of six months after the Term.

For a prospective franchisee, this clause has several implications. First, it means that Remax can use the franchisee's customer data for its own benefit, potentially without providing any direct compensation to the franchisee. Second, it highlights the importance of understanding what data is being collected and how it will be used. Franchisees should carefully review the terms of the franchise agreement and seek legal advice if they have any concerns about the use of their customer data. Finally, franchisees should be aware of their responsibilities for the accuracy, quality, and legality of the customer data they provide to Remax.

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.