Does the Remax franchise agreement include a waiver of punitive damages, limiting recovery to actual compensatory damages in case of a dispute?
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 the 2025 Remax Franchise Disclosure Document, the franchise agreement includes a waiver of punitive damages. This means that, to the fullest extent permitted by law, both Remax and the franchisee agree to waive any right to claim aggravated, punitive, or exemplary damages against each other.
In the event of a dispute, both parties are limited to recovering only actual compensatory damages. This provision prevents either party from seeking additional damages intended to punish the other party, focusing instead on direct financial losses.
This type of waiver is relatively common in franchise agreements. It aims to limit the financial exposure of both the franchisor and the franchisee in case of legal disputes, promoting a more predictable and manageable risk environment. Additionally, the agreement includes an irrevocable waiver of a jury trial in any action or proceeding brought by either party.