Are there any liabilities that Remax cannot exclude or limit under applicable law?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
THE FOREGOING DOES NOT AFFECT ANY WARRANTIES THAT CANNOT BE EXCLUDED OR LIMITED UNDER APPLICABLE LAW.
Limitation on Liability
TO THE FULLEST EXTENT PROVIDED BY LAW, IN NO EVENT WILL RE/MAX, ITS SHAREHOLDERS, DIRECTORS, AFFILIATES, OFFICERS, AGENTS AND EMPLOYEES, LICENSORS, SERVICE PROVIDERS, AND ALL THIRD PARTIES THAT PROVIDE CONTENT, INFORMATION OR SERVICES TO THE PLATFORM BE LIABLE FOR DAMAGES OF ANY KIND, UNDER ANY LEGAL THEORY, ARISING OUT OF OR IN CONNECTION WITH YOUR USE, OR INABILITY TO USE, THE PLATFORM, ANY APPLICATIONS LINKED TO IT, ANY CONTENT ON THE PLATFORM OR SUCH OTHER APPLICATIONS, INCLUDING ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING BUT NOT LIMITED TO, PERSONAL INJURY, PAIN AND SUFFERING, EMOTIONAL DISTRESS, LOSS OF REVENUE, LOSS OF PROFITS, LOSS OF BUSINESS OR ANTICIPATED SAVINGS, LOSS OF USE, LOSS OF GOODWILL, LOSS OF DATA, AND WHETHER CAUSED BY TORT (INCLUDING NEGLIGENCE), BREACH OF CONTRACT, OR OTHERWISE, EVEN IF FORESEEABLE.
THE FOREGOING DOES NOT AFFECT ANY LIABILITY THAT CANNOT BE EXCLUDED OR LIMITED UNDER APPLICABLE LAW.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, Remax includes provisions in its contracts addressing disclaimers of warranties and limitations on liability. These provisions generally state that Remax aims to limit its liability to the fullest extent permitted by law. This includes disclaiming warranties related to the Remax platform or MAX/Center and limiting liability for damages arising from a franchisee's use or inability to use these platforms. The damages covered include direct, indirect, special, incidental, consequential, or punitive damages, encompassing personal injury, emotional distress, loss of revenue, and loss of data.
However, the FDD also states a crucial exception: these limitations and disclaimers do not affect any liabilities or warranties that Remax cannot exclude or limit under applicable law. This means that despite the broad language of the limitation of liability and disclaimer of warranties, there are some legal obligations and guarantees that Remax cannot avoid. These would be determined by the specific laws and regulations governing franchise agreements and business operations in the relevant jurisdiction.
This clause serves as a legal safeguard, ensuring that Remax remains compliant with consumer protection laws and other regulations that protect franchisees. While Remax seeks to minimize its potential liability, it acknowledges that certain legal responsibilities cannot be waived. Prospective franchisees should consult with legal counsel to understand what specific protections and rights they have under applicable laws, which would override any attempts by Remax to disclaim or limit liability.
In practical terms, this means that while the franchise agreement may contain language that appears to broadly limit Remax's responsibility, franchisees retain certain legal rights that cannot be contracted away. Understanding these rights is crucial for any prospective franchisee to assess the risks and benefits of investing in a Remax franchise.