What does Remax represent regarding conflicts with other agreements, commitments, or obligations with another person?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
By executing this Agreement, you individually and on behalf of your heirs, legal representatives, successors and assigns, and each assignee of this Agreement by accepting such assignment, release and discharge us and REMAX, LLC and our and their Related Parties, and our and their current and former respective officers, directors, employees, and shareholders, from any and all claims existing as of the date of this Agreement, and which relate to or arise out of any franchise agreement or any other agreement between the parties executed prior to the date of this Agreement, or the franchise relationship previously existing between the parties, including but not limited to, any and all claims, whether presently known or unknown, suspected or unsuspected, arising under the franchise, securities, antitrust laws or other laws of the United States or of any state.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, when a franchisee signs the franchise agreement, they release Remax, LLC from any prior claims. This means that by signing the agreement, the franchisee is giving up any existing claims against Remax, LLC, or its related parties, that occurred before the date of the new agreement. This release covers all types of claims, whether known or unknown, suspected or unsuspected, and includes claims arising under franchise, securities, antitrust laws, or other laws.
This clause is significant for prospective franchisees as it eliminates the possibility of pursuing legal action against Remax for any past issues once the franchise agreement is signed. It is a comprehensive waiver that covers a broad range of potential claims, ensuring that Remax is protected from prior liabilities. The franchisee should carefully consider this aspect, especially if there are any ongoing disputes or potential claims against Remax before entering into the agreement.
This type of release is a common practice in franchising, as it aims to provide a clean slate for the ongoing franchise relationship. However, franchisees should seek legal counsel to fully understand the implications of releasing all prior claims, as it could affect their rights and remedies in case of past grievances. Franchisees should be aware of this clause and factor it into their decision-making process.