Where must any legal suit, action, or proceeding arising out of or related to the Remax agreement be instituted?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
EXCEPT TO THE EXTENT GOVERNED BY THE UNITED STATES TRADEMARK ACT OF 1946 (LANHAM ACT, 15 U.S.C. §§1051 ET SEQ.), THIS AGREEMENT AND THE FRANCHISE WILL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF COLORADO (WITHOUT REFERENCE TO ITS CHOICE OF LAW AND CONFLICT OF LAW RULES). YOU AGREE THAT ANY ACTION ARISING OUT OF OR RELATING IN ANY MANNER TO THIS AGREEMENT SHALL BE INSTITUTED IN, AND ONLY IN, A STATE OR FEDERAL COURT OF GENERAL JURISDICTION IN THE COUNTY OF DENVER, STATE OF COLORADO AND YOU IRREVOCABLY SUBMIT TO THE JURISDICTION OF SUCH COURTS AND WAIVE ANY OBJECTION YOU MAY HAVE TO EITHER THE EXCLUSIVE JURISDICTION OR VENUE OF SUCH COURT; PROVIDED, HOWEVER, WITH RESPECT TO ANY ACTION RELATING TO THE RE/MAX MARKS, OR ANY ACTION FOR INJUNCTIVE OR OTHER EXTRAORDINARY RELIEF, WE MAY BRING SUCH ACTION IN ANY STATE OR FEDERAL DISTRICT COURT THAT HAS JURISDICTION.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, any legal action related to the franchise agreement must be initiated in a state or federal court of general jurisdiction within Denver County, Colorado. The franchisee consents to the jurisdiction of these courts and waives any objections to the jurisdiction or venue.
However, there is an exception: Remax can bring actions related to the RE/MAX Marks or for injunctive or other extraordinary relief in any state or federal district court that has jurisdiction. This means Remax retains the flexibility to choose a different venue for specific types of legal actions, potentially closer to their headquarters or where the infringement occurred.
This clause is typical in franchise agreements, as it provides clarity and predictability regarding where legal disputes will be resolved. It's important for prospective Remax franchisees to understand that they are generally agreeing to litigate in Colorado, which could involve significant travel and legal expenses if a dispute arises.