factual

What is the deadline after the Notice of Claim is received to reach an agreement with Remax before commencing arbitration?

Remax Franchise · 2025 FDD

Answer from 2025 FDD Document

If we do not reach an agreement to resolve the Claim within sixty (60) days after the Notice of Claim is received, you or Intuit may commence an arbitration proceeding by filing a Demand for Arbitration or, alternatively, by filing a Claim in small claims court. You agree that you may not commence any arbitration or file a Claim in small claims court unless you and Intuit are unable to resolve the Claim within sixty (60) days after we receive your completed Notice of Claim and you have made a good faith effort to resolve your claim directly with Intuit during that time. If a Claim qualifies for small claims court, but a party commences an arbitration proceeding, you and Intuit agree that either party may elect instead to have the Claim resolved in small claims court, and upon written notice of a party's election, the American Arbitration Association ("AAA") will administratively close the arbitration proceeding. Any dispute about whether a Claim qualifies for small claims court shall be resolved by that court, not by an arbitrator. In the event of any such dispute, the arbitration proceeding shall remain closed unless and until a decision by the small claims court that the Claim should proceed in arbitration. You may download or copy a form of notice and a form to initiate arbitration at www.adr.org or by calling 1-800-778-7879. The arbitration will be conducted by the AAA before a single AAA arbitrator under the AAA's rules, which are available at www.adr.org or by calling 1-800-778-7879, except as modified by this Agreement. Unless Intuit and you agree otherwise, any arbitration hearings will take place in the county (or parish) of either your residence or of the mailing address you provided in your Notice of Claim.

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

What This Means (2025 FDD)

According to Remax's 2025 Franchise Disclosure Document, a franchisee has 60 days after Remax receives a Notice of Claim to reach an agreement with them to resolve the claim. If an agreement cannot be reached within this 60-day period, the franchisee or Remax may commence an arbitration proceeding or file a claim in small claims court.

However, the franchisee must also demonstrate a good faith effort to resolve the claim directly with Remax during this 60-day period. This implies that simply waiting for the 60 days to pass without attempting to negotiate a resolution could be seen as a failure to act in good faith, potentially impacting the franchisee's ability to proceed with arbitration or a small claims court case.

If the claim qualifies for small claims court but a party starts an arbitration, either party can choose to have the claim resolved in small claims court instead. Any disputes about whether a claim qualifies for small claims court will be resolved by that court, not by an arbitrator. Franchisees should be aware of these stipulations regarding dispute resolution and small claims court eligibility, as they can significantly affect the process and venue of resolving potential conflicts with 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.