What is Remax, LLC's stance on the claims made in the Calabrese lawsuit?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
On April 10, 2018, former RE/MAX franchise owners Salvatore Calabrese and Michael Calabrese and former franchisee Related Assets LLC d/b/a RE/MAX Metro filed suit against RE/MAX, LLC RE/MAX of New York, Inc. and others relating to the refusal to renew/termination of their three franchise agreements. Plaintiffs allege, among other things, that RE/MAX, LLC and/or RE/MAX of New York Inc. improperly: refused to recognize an alleged verbal agreement to renew the franchise agreements; required Plaintiffs to renew on the then-current form of franchise agreement with allegedly less favorable terms; refused to allow Plaintiffs to renew their existing form of franchise agreement; and solicited, and subsequently granted competing franchise locations to, certain of the sales agents who had been associated with Plaintiffs in an alleged effort to secure certain of Plaintiffs' business despite alleged non-compete agreements of those sales agents. On February 11, 2019, Plaintiffs amended their complaint and dismissed RE/MAX of New York, Inc. Plaintiffs allege in their amended complaint: breach of the franchise agreements; breach of the duty of good faith and fair dealing; promissory estoppel; breach of contract pertaining to non-compete provisions; unfair competition/misappropriation; unjust enrichment; tortious interference with a contract and/or prospective contractual relations; fraudulent inducement; conversion/civil theft; and civil conspiracy. Plaintiffs seek rescission (of the new terms in the franchise agreements) and an unspecified amount of damages, including actual damages, consequential damages, special damages, statutory damages, attorneys' fees, punitive or exemplary damages, pre- and postjudgment interest and costs. RE/MAX, LLC filed a motion to dismiss which was granted in part and denied in part on May 26, 2020. RE/MAX, LLC intends to vigorously defend against all claims.
Source: Item 3 — LITIGATION (FDD pages 21–29)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Remax, LLC intends to vigorously defend against all claims made in the lawsuit filed by former franchise owners Salvatore Calabrese, Michael Calabrese, and Related Assets LLC. The lawsuit, initiated on April 10, 2018, involves allegations that Remax, LLC and/or RE/MAX of New York Inc. improperly refused to recognize an alleged verbal agreement to renew the franchise agreements, required renewal on less favorable terms, refused to allow renewal on existing terms, and solicited sales agents from the plaintiffs.
The plaintiffs' amended complaint includes claims for breach of the franchise agreements, breach of the duty of good faith and fair dealing, promissory estoppel, breach of contract pertaining to non-compete provisions, unfair competition/misappropriation, unjust enrichment, tortious interference with a contract and/or prospective contractual relations, fraudulent inducement, conversion/civil theft, and civil conspiracy. They are seeking rescission of the new terms in the franchise agreements and an unspecified amount of damages, including actual, consequential, special, and statutory damages, as well as attorneys' fees, punitive or exemplary damages, pre- and post-judgment interest, and costs.
Remax, LLC filed a motion to dismiss, which was partially granted and partially denied on May 26, 2020. Despite the ongoing litigation, Remax maintains its stance to vigorously defend against all claims. This indicates that Remax does not concede to any of the allegations and is prepared to contest the lawsuit through legal means. Prospective franchisees should be aware of this ongoing legal matter and its potential implications, although the FDD states that the outcome is uncertain and will depend on future legal proceedings.