In the event of a dispute, does a Remax franchisee waive the right to punitive damages and a jury trial?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
THE PARTIES HEREBY WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO OR CLAIM FOR ANY AGGRAVATED, PUNITIVE OR EXEMPLARY DAMAGES AGAINST THE OTHER AND AGREE THAT IN THE EVENT OF A DISPUTE BETWEEN THEM EACH WILL BE LIMITED TO THE RECOVERY OF ANY ACTUAL COMPENSATORY DAMAGES. THE PARTIES IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING BROUGHT BY EITHER OF THEM.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, franchisees waive certain rights in the event of a dispute with the company. Specifically, the agreement states that both parties waive, to the fullest extent permitted by law, any right to claim punitive or exemplary damages against the other. This means that if a Remax franchisee has a dispute with Remax, they are limited to recovering only actual compensatory damages and cannot seek additional damages intended to punish the other party.
In addition to waiving the right to punitive damages, both Remax and the franchisee irrevocably waive their right to a trial by jury in any legal action or proceeding brought by either party. This means that any dispute will be resolved by a judge rather than a jury.
These waivers are significant for a prospective Remax franchisee because they limit the legal recourse available to them in case of a dispute with the franchisor. Franchisees should carefully consider the implications of these waivers and consult with an attorney before signing the franchise agreement to fully understand their rights and obligations.