Does Remax, LLC warrant that its site will operate uninterrupted or in a manner that will meet a franchisee's particular requirements and/or needs?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) YOU DID NOT RECEIVE ORAL OR WRITTEN EARNINGS CLAIMS INFORMATION AND HAVE NOT RELIED ON ANY WARRANTY OR REPRESENTATION, EXPRESSED OR IMPLIED, AS TO THE POTENTIAL SUCCESS OF THE BUSINESS VENTURE CONTEMPLATED BY THIS AGREEMENT;
- (8) NO REPRESENTATIONS OR PROMISES HAVE BEEN MADE BY US OR REMAX, LLC TO INDUCE YOU TO ENTER INTO THIS AGREEMENT EXCEPT AS SPECIFICALLY INCLUDED IN THIS AGREEMENT;
- (11) YOU ACKNOWLEDGE THAT WE MAY EXERCISE ANY OPTION OR OTHER RIGHT UNDER THIS AGREEMENT OR UNDER ANY AGREEMENT CONTEMPLATED HEREBY, WE MAY DO SO IN OUR REASONABLE BUSINESS JUDGMENT, WITHOUT LIABILITY OR OTHER OBLIGATION. SO AS TO PRESERVE THE FLEXIBILITY TO DEAL WITH PRACTICAL SITUATIONS, WE MAY, IN OUR REASONABLE BUSINESS JUDGMENT, ELECT TO NOT ENFORCE (OR TO SELECTIVELY ENFORCE) ANY PROVISION OF THIS AGREEMENT, OR ANY OTHER AGREEMENT, ANY POLICY OR OTHERWISE, WHETHER WITH RESPECT TO YOU OR ANY OTHER FRANCHISEE OR OTHERWISE, AND WE MAY APPLY DIFFERENT POLICIES TO ANY FRANCHISEE, ALL WITHOUT LIABILITY OR OTHER OBLIGATION, AND ANY SUCH ACTS OR OMISSIONS WILL NOT LIMIT OR OTHERWISE AFFECT OUR RIGHTS, WHETHER TO ENFORCE THIS AGREEMENT STRICTLY OR OTHERWISE.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
Based on the 2025 Remax Franchise Disclosure Document, Remax, LLC does not provide any explicit warranties regarding uninterrupted operation or meeting specific franchisee requirements. However, the document does state that the franchisee acknowledges that Remax, LLC may exercise any option under the agreement in its reasonable business judgment, without liability or other obligation. This suggests that Remax does not guarantee any specific level of performance or operational standards tailored to individual franchisee needs.
Furthermore, the FDD includes an acknowledgment from the franchisee that no representations or promises have been made by Remax, LLC to induce them to enter into the agreement, except as specifically included in the agreement. This reinforces the absence of any operational guarantees or warranties outside the written contract. The franchisee also acknowledges that Remax may selectively enforce any provision of the agreement without liability, indicating that Remax retains flexibility in how it manages the franchise network.
In practical terms, a prospective Remax franchisee should not assume that their site's operation or performance is guaranteed by Remax, LLC. The franchisee bears the responsibility for ensuring the site meets their specific requirements and needs. It is crucial for potential franchisees to conduct thorough due diligence, seek professional advice, and carefully review the franchise agreement to understand the scope of Remax's obligations and the franchisee's responsibilities.