Does the Remax franchise agreement guarantee any specific results for the franchisee?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
S SPECULATIVE AND WILL DEPEND ON MANY FACTORS INCLUDING, TO A LARGE EXTENT, YOUR INDEPENDENT BUSINESS ABILITY AND PERSONAL EFFORTS. YOU FURTHER AGREE THAT YOU, ONE OF YOUR PRINCIPAL OWNERS, OR SUCH VALIDLY LICENSED REAL ESTATE BROKER AS YOU SELECT TO MANAGE THE OFFICE, WILL BE RESPONSIBLE FOR, AND INTENDS TO DEVOTE BEST EFFORTS AND FULL TIME TO, THE MANAGEMENT AND DEVELOPMENT OF THE OFFICE;
(3) NEITHER WE NOR REMAX, LLC HAVE GUARANTEED ANY RESULTS TO YOU AND CANNOT, EXCEPT UNDER AND TO THE EXTENT OF THE TERMS OF THIS AGREEMENT, EXERCISE CONTROL OVER YOUR BUSINESS;
(4) YOU DID NOT RECEIVE ORAL OR WRITTEN INFORMATION CONTRARY TO THE INFORMATION CONTAINED IN OUR FRANCHISE DISCLOSURE DOCUMENT AND THIS AGREEMENT;
(5) YOU DID NOT RECEIVE ORAL OR WRITTEN EARNINGS CLAIMS INFORMATION AND HAVE NOT RELIED ON ANY WARRANTY OR REPRESENTATION, EXPRESSED OR IMPLIED, AS TO THE POTENTIAL SUCCESS OF THE BUSINESS VENTURE CONTEMPLATED BY THIS AGREEMENT;
(6) WE HAVE ENCOURAGED YOU TO SEEK LEGAL AND/OR OTHER PROFESSIONAL GUIDANCE AND ADVICE PRIOR TO SIGNING THIS AGREEMENT AND HAVE ENCOURAGED YOU TO CONTACT EXISTING RE/MAX FRANCHISEES TO GAIN A BETTER UNDERSTANDING OF THE REQUIREMENTS AND BENEFITS OF OWNING A RE/MAX OFFICE FRANCHISE;
(7) YOU HAVE HAD A FULL OPPORTUNITY TO REVIEW THE DISCLOSURE DOCUMENT AND THIS AGREEMENT PROVIDED BY US AND UNDERSTAND THE TERMS, CONDITIONS AND OBLIGATIONS OF THIS AGREEMENT;
(8) NO REPRESENTATIONS OR PROMISES HAVE BEEN MADE BY US OR REMAX, LLC TO INDUCE YOU TO ENTER INTO THIS AGREEMENT EXCEPT AS SPECIFICALLY INCLUDED IN THIS AGREEMENT;
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, the franchise agreement does not guarantee any specific results or success for the franchisee. The document emphasizes that franchisees should not rely on any expressed or implied warranty or representation regarding the potential success of the business venture. This means Remax does not promise any specific level of income, sales, or market share.
Remax encourages prospective franchisees to seek legal and professional advice before signing the agreement and to contact existing Remax franchisees to understand the requirements and benefits of owning a Remax office. This proactive approach suggests that potential franchisees should conduct thorough due diligence and not solely rely on any assurances from Remax regarding potential business outcomes.
The Remax FDD also includes an acknowledgement that no representations or promises have been made by Remax to induce the franchisee to enter into the agreement, except as specifically included in the agreement. Furthermore, franchisees acknowledge that Remax may exercise its rights under the agreement in its reasonable business judgment, without liability or other obligation. This clause underscores that Remax retains flexibility in dealing with practical situations and may choose not to enforce certain provisions of the agreement, without this limiting their rights.