What effect does a statement, questionnaire, or acknowledgment signed by a Remax franchisee have on waiving claims under state franchise law or disclaiming reliance on statements made by the franchisor?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement; or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 6 — The amount charged for the Insufficient Funds Processing Fee in Minnesota is $30. (FDD pages 464–473)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, certain addenda address the effect of franchisee-signed documents on waiving claims, particularly in Minnesota and Rhode Island. For franchisees in these states, a statement, questionnaire, or acknowledgment signed in connection with starting the franchise will not waive claims under state franchise law. This includes claims of fraud.
Specifically, these documents also cannot disclaim reliance on statements made by Remax, its sellers, or anyone acting on Remax's behalf. This protection is designed to ensure that franchisees in Minnesota and Rhode Island retain their legal rights and are not bound by clauses that might otherwise limit their ability to pursue claims against the franchisor.
This provision supersedes any other conflicting terms in any document executed with the franchise, reinforcing the priority of state franchise law in protecting the franchisee. However, these addenda apply only if the jurisdictional requirements of the Minnesota Franchises Law or the Rhode Island Franchise Investment Act are independently met, without relying on the addendum itself to establish jurisdiction.