What should be done if the Remax Disclosure Document is not delivered on time or contains false/misleading statements or material omissions?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
IF WE DO NOT DELIVER THIS DISCLOSURE DOCUMENT ON TIME OR IF IT CONTAINS A FALSE OR MISLEADING STATEMENT, OR A MATERIAL OMISSION, A VIOLATION OF FEDERAL LAW AND STATE LAW MAY HAVE OCCURRED AND SHOULD BE REPORTED TO THE FEDERAL TRADE
COMMISSION, WASHINGTON, DC 20580 AND THE STATE AGENCIES LISTED IN EXHIBIT H.
Source: Item 23 — RECEIPTS (FDD pages 473–476)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, if the document is not delivered on time, or if it contains false or misleading statements, or a material omission, a violation of federal and state law may have occurred. In such cases, the FDD advises that this should be reported to the Federal Trade Commission (FTC) in Washington, DC 20580, and to the state agencies listed in Exhibit H of the FDD.
This instruction is crucial for prospective Remax franchisees because it outlines their rights and the steps they can take if they believe they have been provided with inaccurate or incomplete information. The FTC and state agencies are responsible for enforcing franchise laws and protecting franchisees from unfair or deceptive practices. By reporting such issues, franchisees can initiate investigations and potentially recover damages or other remedies.
Most franchise agreements include similar clauses about adherence to federal and state laws regarding disclosure. Exhibit H, referenced in the disclosure, should contain a comprehensive list of relevant state agencies to contact, ensuring that franchisees know exactly where to report any issues specific to their location. This level of transparency and guidance is intended to protect potential franchisees and maintain the integrity of the franchising process.