What agreement is a Remax broker-manager required to make in writing?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
If you or a principal owner does not have a valid real estate broker license, you will be required to secure the services of an individual with a valid real estate broker license under whose license the Office will be conducted and who will be responsible for the management of the Office ("broker-manager"). If you are a corporation, partnership, limited liability company or other business entity, this broker-manager need not have an equity interest in you but will be required to agree in writing to preserve the confidentiality of any confidential information to which he or she has access. You or your principal owner or, if applicable, your brokermanager, will be required to devote his or her full time and best efforts to managing and supervising the Office's operations and, during the term of the Franchise Agreement, will not be permitted to operate, manage, own or have an interest in or become affiliated with in any other way (1) any non-RE/MAX real estate service business; or (2) any other business or enterprise offering products or services that directly or indirectly compete with the products and services offered by RE/MAX offices, RE/MAX Regional, REMAX, LLC, or any of REMAX, LLC's affiliates. Although you or your principal owner will be required to attend Initial Education and Recruiting 101 in their entirety, no similar obligation will be imposed upon the broker-manager and your broker/manager is not required to successfully complete either program.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 80–81)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, if the franchisee is a business entity (corporation, partnership, LLC, etc.) and does not have a valid real estate broker license, they must secure a broker-manager to manage the office. This broker-manager is required to agree in writing to preserve the confidentiality of any confidential information they access. This written agreement is necessary because the broker-manager may not have an equity interest in the franchise business entity.
This requirement ensures that even if the broker-manager is not an owner, they are legally bound to protect Remax's confidential information. This is a standard practice in franchising to safeguard proprietary information and trade secrets. The broker-manager must devote their full time and best efforts to managing and supervising the Office's operations and, during the term of the Franchise Agreement, will not be permitted to operate, manage, own or have an interest in or become affiliated with in any other way (1) any non-RE/MAX real estate service business; or (2) any other business or enterprise offering products or services that directly or indirectly compete with the products and services offered by RE/MAX offices, RE/MAX Regional, REMAX, LLC, or any of REMAX, LLC's affiliates.
For a prospective Remax franchisee, this means that if they choose to operate their franchise through a business entity and do not personally hold a real estate broker license, they will need to find a qualified broker-manager. They will also need to ensure that the broker-manager signs a written agreement to protect confidential information. This adds an extra layer of responsibility for the franchisee, as they must not only find a suitable manager but also ensure the legal requirements are met.
It is important to note that while the franchisee or a principal owner must attend Initial Education and Recruiting 101, the broker-manager has no similar obligation. This may influence the franchisee's decision on whether to personally hold a real estate broker license or hire a broker-manager.