What was the outcome of Remax, LLC's motion to dismiss in the Calabrese case?

According to Remax's 2025 Franchise Disclosure Document, in the case of Salvatore Calabrese, Michael Calabrese, and Related Assets LLC d/b/a RE/MAX Metro v. RE/MAX, LLC, RE/MAX's motion to dismiss was granted in part and denied in part on May 26, 2020. The lawsuit, filed on April 10, 2018, involves allegations that Remax improperly refused to renew or terminated franchise agreements. The plaintiffs also claimed that Remax solicited and granted competing franchise locations to sales agents associated with the plaintiffs, allegedly to secure the plaintiffs' business despite non-compete agreements. The plaintiffs' amended complaint includes claims such as breach of contract, breach of duty of good faith, promissory estoppel, unfair competition, and other related charges. 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 and interest. Remax intends to vigorously defend against all claims.

For a prospective franchisee, this partial granting and denial of the motion to dismiss means that some of the claims against Remax were deemed potentially valid by the court, while others were not. This indicates that the litigation is ongoing and could potentially result in financial or other impacts on Remax, which could indirectly affect franchisees. The fact that Remax intends to vigorously defend against all claims suggests that the company is committed to contesting the allegations and protecting its interests.

It is important for potential franchisees to understand that litigation can be costly and time-consuming for all parties involved. While Remax states its intent to defend vigorously, the outcome of the case is uncertain, and any adverse judgment could have implications for the company's financial stability and reputation. Prospective franchisees should consider the potential risks associated with ongoing litigation when evaluating the franchise opportunity and may want to seek further clarification from Remax regarding the status and potential impact of this lawsuit.