What representation does Remax make regarding its ability to grant licenses for the Software and Additional BoldTrail Products?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.2 Licensor represents and warrants to Customer that: (a) it is incorporated or organized and is in good standing under the Laws of the state of its incorporation or organization; (b) it is legally able to enter into and perform its obligations under and make its representations and warranties in this Agreement and each Product Schedule (if applicable); (c) this Agreement and each Product Schedule (if applicable) does not and will not conflict with any other of Licensor's agreements, commitments, or obligations with or to another Person; and (d) it owns or has the right to use the Software and Additional BoldTrail Products and can grant all licenses and permissions granted under the Agreement and any Product Schedule(s) to Customer and its Authorized Users;
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the licensor warrants that it owns or has the right to use the Software and Additional BoldTrail Products. This means Remax represents that it possesses the necessary rights to grant licenses and permissions to the customer (franchisee) and its authorized users, allowing them to access and utilize the software and products as outlined in the franchise agreement and any associated product schedules.
This representation is crucial for a prospective Remax franchisee because it assures them that they will have the legal right to use the software and products necessary for operating their franchise. Without this assurance, a franchisee could face legal issues or be unable to fully utilize the resources provided by Remax. The warranty extends to ensuring that the use of these products does not infringe on the intellectual property rights of any third party.
However, this warranty is not without limitations. The warranty becomes void if any defect or issue arises from the franchisee's breach of the agreement, or if unauthorized modifications or misuse of the software occur. This places a responsibility on the franchisee to adhere to the terms of the agreement and ensure that the software is used correctly and in compliance with the provided documentation. Additionally, Remax may modify or discontinue the BoldTrail Back Office software at any time without liability to the franchisee.
It is fairly standard in franchising for the franchisor to represent that they have the right to license the software and systems that franchisees need to operate. Prospective franchisees should carefully review the terms and conditions related to software usage, including any restrictions or limitations, to fully understand their rights and obligations. Franchisees should also confirm what happens if Remax discontinues the software.