Does the Remax franchise agreement allow Remax to selectively enforce provisions of the agreement without incurring liability?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
- (11) YOU ACKNOWLEDGE THAT WE MAY EXERCISE ANY OPTION OR OTHER RIGHT UNDER THIS AGREEMENT OR UNDER ANY AGREEMENT CONTEMPLATED HEREBY, WE MAY DO SO IN OUR REASONABLE BUSINESS JUDGMENT, WITHOUT LIABILITY OR OTHER OBLIGATION. SO AS TO PRESERVE THE FLEXIBILITY TO DEAL WITH PRACTICAL SITUATIONS, WE MAY, IN OUR REASONABLE BUSINESS JUDGMENT, ELECT TO NOT ENFORCE (OR TO SELECTIVELY ENFORCE) ANY PROVISION OF THIS AGREEMENT, OR ANY OTHER AGREEMENT, ANY POLICY OR OTHERWISE, WHETHER WITH RESPECT TO YOU OR ANY OTHER FRANCHISEE OR OTHERWISE, AND WE MAY APPLY DIFFERENT POLICIES TO ANY FRANCHISEE, ALL WITHOUT LIABILITY OR OTHER OBLIGATION, AND ANY SUCH ACTS OR OMISSIONS WILL NOT LIMIT OR OTHERWISE AFFECT OUR
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, Remax retains the right to selectively enforce provisions of the franchise agreement without incurring liability. Specifically, Remax may choose not to enforce certain provisions or apply different policies to franchisees at their discretion. This flexibility is intended to allow Remax to address practical situations as they arise.
This clause means that Remax franchisees may experience inconsistent application of the franchise agreement terms. While Remax commits to exercising reasonable business judgment, the lack of uniform enforcement could create uncertainty. Some franchisees might face stricter enforcement of certain rules compared to others, potentially impacting their business operations and profitability.
Prospective Remax franchisees should carefully consider the implications of this selective enforcement clause. It introduces an element of subjectivity into the franchisor-franchisee relationship. Franchisees should seek clarification from Remax regarding the specific types of provisions that may be subject to selective enforcement and the criteria used to make such decisions. Understanding Remax's approach to enforcement can help franchisees better assess the potential risks and benefits of investing in a Remax franchise.