Does the Remax franchise agreement require franchisees to waive their right to participate in class action lawsuits against Remax, LLC?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
J. WAIVER OF CLASS ACTION.
THE PARTIES RECOGNIZE THAT THEIR RELATIONSHIP IS UNIQUE AND THAT EACH FRANCHISEE IS SITUATED DIFFERENTLY FROM ALL OTHER FRANCHISEES, AND THAT NO ONE FRANCHISEE CAN ADEQUATELY REPRESENT THE INTEREST OF OTHERS. THEREFORE, THE PARTIES AGREE THAT ANY LEGAL PROCEEDING SHALL BE CONDUCTED AND RESOLVED ON AN INDIVIDUAL BASIS ONLY AND NOT ON A CLASS-WIDE, MULTIPLE PLAINTIFF, CONSOLIDATED OR SIMILAR BASIS. TO THE EXTENT PERMITTED BY LAW, YOU AGREE THAT ANY JUDICIAL PROCEEDING WILL BE CONSIDERED AS TO ITS FACTS AND WILL NOT BE COMMENCED OR PROCEEDED WITH AS A CLASS ACTION. TO THE EXTENT PERMITTED BY LAW, YOU AND EACH OF YOUR OWNERS WAIVE ANY RIGHT TO PROCEED AGAINST REMAX REGIONAL OR REMAX, LLC BY WAY OF CLASS ACTION.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, franchisees are required to waive their right to participate in class action lawsuits against Remax, LLC. The FDD states that the parties recognize the unique relationship between each franchisee and that no single franchisee can adequately represent the interests of others.
Therefore, the agreement stipulates that any legal proceeding must be conducted and resolved on an individual basis, explicitly excluding class-wide, multiple plaintiff, consolidated, or similar actions. To the extent permitted by law, franchisees agree that any judicial proceeding will be considered based on its specific facts and will not be initiated or continued as a class action.
This waiver extends to any right to proceed against Remax Regional or Remax, LLC through a class action. This clause is included in the franchise agreement, meaning that a franchisee agrees to it upon signing the agreement.