How are Remax annual dues paid by RE/MAX agents?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
Annual dues are a fixed membership fee paid annually by RE/MAX agents directly to the Company. The Company defers the annual dues revenue when billed and recognizes the revenue ratably over the 12-month period to which it relates. See the "Deferred Revenue" section below for a reconciliation of the activity in the Company's deferred revenue for annual dues. Annual dues revenue is a usage-based royalty as it is dependent on the number of RE/MAX agents.
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, annual dues are a fixed membership fee. These dues are paid annually by RE/MAX agents directly to the Company.
Remax recognizes the revenue from these annual dues ratably over the 12-month period to which the dues relate. This means that even though the dues are collected upfront, the revenue is recorded gradually throughout the year.
For a prospective franchisee, this payment structure means that their agents will have a predictable, fixed cost for their RE/MAX membership. This contrasts with other fees, such as broker fees, which are based on a percentage of commissions earned. The annual dues revenue is considered a usage-based royalty because it depends on the number of RE/MAX agents.