Where can a Remax customer seek to have a claim resolved in small claims court?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
EXCEPT TO THE EXTENT GOVERNED BY THE UNITED STATES TRADEMARK ACT OF 1946 (LANHAM ACT, 15 U.S.C. §§1051 ET SEQ.), THIS AGREEMENT AND THE FRANCHISE WILL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF COLORADO (WITHOUT REFERENCE TO ITS CHOICE OF LAW AND CONFLICT OF LAW RULES). YOU AGREE THAT ANY ACTION ARISING OUT OF OR RELATING IN ANY MANNER TO THIS AGREEMENT SHALL BE INSTITUTED IN, AND ONLY IN, A STATE OR FEDERAL COURT OF GENERAL JURISDICTION IN THE COUNTY OF DENVER, STATE OF COLORADO AND YOU IRREVOCABLY SUBMIT TO THE JURISDICTION OF SUCH COURTS AND WAIVE ANY OBJECTION YOU MAY HAVE TO EITHER THE EXCLUSIVE JURISDICTION OR VENUE OF SUCH COURT; PROVIDED, HOWEVER, WITH RESPECT TO ANY ACTION RELATING TO THE RE/MAX MARKS, OR ANY ACTION FOR INJUNCTIVE OR OTHER EXTRAORDINARY RELIEF, WE MAY BRING SUCH ACTION IN ANY STATE OR FEDERAL DISTRICT COURT THAT HAS JURISDICTION.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
Based on the 2025 Remax Franchise Disclosure Document, any action arising out of or relating to the franchise agreement, with a limited exception, must be instituted in a state or federal court of general jurisdiction in the County of Denver, State of Colorado. The franchisee irrevocably submits to the jurisdiction of those courts and waives any objection to the exclusive jurisdiction or venue of such court.
However, there is an exception: with respect to any action relating to the Remax Marks, or any action for injunctive or other extraordinary relief, Remax may bring such action in any state or federal district court that has jurisdiction. This means Remax itself has the option to pursue legal action related to its trademarks or for specific legal remedies in locations beyond Colorado, wherever a court has appropriate jurisdiction.
In practical terms, this clause significantly limits a franchisee's ability to bring a lawsuit against Remax to the specified courts in Denver, Colorado. This could increase the franchisee's legal costs due to travel and potentially hiring Colorado-based attorneys. The exception for actions relating to RE/MAX Marks or for injunctive relief allows Remax greater flexibility in choosing the legal venue, potentially placing franchisees at a disadvantage in certain types of disputes. Franchisees should be aware of this forum selection clause and its implications before signing the agreement.