Does the Remax franchise agreement disclaim the representations made in the franchise disclosure document furnished to the franchisee?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement, any documents executed contemporaneously herewith which expressly reference this Agreement, and any documents referred to herein, expresses fully the understanding by and between the parties, and all prior and contemporaneous understandings, agreements, commitments, conditions, warranties and representations of any kind, oral or written, as to the Franchise (except as to information and representations submitted by you to us in application to purchase the Franchise, including, but not limited to, financial statements, references, etc. which shall be deemed to be a part of this Agreement) are canceled and null, void and of no effect. Any previous matter, presently covered within this Agreement, is hereby superseded and canceled with no further liabilities or obligations of the parties with respect to such matter, except as to any monies due and unpaid between the parties to this Agreement at the time of execution of this Agreement. Notwithstanding the foregoing, nothing in this Agreement is intended to disclaim the representations we made in the franchise disclosure document that we furnished to you.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the franchise agreement does not disclaim the representations made in the franchise disclosure document furnished to the franchisee. The franchise agreement states that it expresses the full understanding between the parties and cancels all prior agreements, commitments, and representations related to the franchise. However, it specifically notes that this cancellation does not disclaim the representations Remax made in the franchise disclosure document.
This means that any claims, promises, or statements made by Remax in the FDD are still considered valid and binding, even after the franchise agreement is signed. This is a crucial protection for franchisees, as it ensures that Remax cannot later deny or contradict information provided in the FDD.
Prospective franchisees should carefully review the FDD and understand all the representations made by Remax. If there are any discrepancies between the FDD and the franchise agreement, or if Remax makes any additional promises or guarantees outside of these documents, franchisees should seek legal advice to ensure their rights are protected.