Does the liquidated damages clause in the Remax franchise agreement limit Remax's right to seek injunctive relief for trademark infringement or breach of contract?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
which you or any of your Owners has a controlling interest;
- (5) immediately after we have determined that you intend to Abandon or have Abandoned your Office, or any office under any other agreement between REMAX Regional or any of our Related Parties and: (a) you; (b) any of your Owners; or (c) any Business Entity in which you or any of your Owners has a controlling interest; or
- (6) upon and at any time after expiration of this Agreement during which, with our permission, you continue to operate the Office on a month-to-month holdover basis as provided in Subsection 2.E of this Agreement.
H. DAMAGES.
Notwithstanding anything contained herein, in addition to any other remedies provided for herein or under applicable law, you agree that after passage of a 10 day period following the ter
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the liquidated damages clause does not limit Remax's right to seek injunctive relief for trademark infringement or breach of contract. Specifically, after a 10-day period following the termination or expiration of the agreement or abandonment of the office, a franchisee must pay Remax $500 for each day they fail to perform their obligations under specific subsections related to de-identification.
However, this monetary amount is considered liquidated damages and not a penalty. The franchise agreement explicitly states that this section does not limit the franchisee's liability for trademark infringement, trademark counterfeiting, unfair competition, or breach of contract.
Furthermore, the agreement clarifies that the liquidated damages clause does not affect or limit Remax's right to seek or obtain injunctive relief, specific performance, or other extraordinary relief. This means that even if the liquidated damages clause is invoked, Remax retains the right to pursue legal actions such as injunctions to protect its trademarks and enforce the franchise agreement.