Does the governing law provision in the Remax User Agreement include non-contractual disputes or claims?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
All matters relating to MAX/Center and this User Agreement, and any dispute or claim arising therefrom or related thereto (in each case, including non-contractual disputes or claims), shall be governed by and construed in accordance with the internal laws of the State of Colorado, excluding any principles or rules of law that may direct the application of the law of another state.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, the governing law provision in the User Agreement explicitly includes non-contractual disputes or claims. This means that any legal disputes, whether based on the contract itself or other legal theories, will be governed by the laws of Colorado. This is stated within the context of matters relating to the MAX/Center platform and the User Agreement.
For a prospective Remax franchisee, this means that if a dispute arises that is not directly related to a breach of the User Agreement but is still connected to the franchisee's use of the MAX/Center platform, the laws of Colorado will apply. This could include claims of fraud, misrepresentation, or other tort claims that might arise from the relationship between the franchisee and Remax or third parties through the platform.
The FDD specifies that the laws of Colorado will govern, excluding any principles that might direct the application of another state's laws. This ensures that all disputes are resolved under a consistent legal framework. Franchisees should be aware of Colorado law and how it might affect their rights and obligations under the User Agreement. It may be prudent for prospective franchisees to consult with legal counsel to understand the implications of this governing law provision, especially if they are located outside of Colorado.