Can a Remax Broker allow or prohibit the advertising of commission rates or fees by Sales Associates?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
You should maintain the independence of your Office in determining the commission rates charged for your Office services and for the commission plans offered to your Sales Associates. You and your Sales Associates shall refrain from any comment, advertising, or other conduct that could lead consumers to believe that the commission rates or fees of RE/MAX offices or agents are uniform, set at any specific level, or are not negotiable. You should set commission rates or fees independently and may elect to advertise those rates or fees. Subject to your rights and responsibilities to supervise your Sales Associates, you may allow your Sales Associates to set, or prohibit your Sales Associates from setting, commission rates or fees independently, and you may allow your Sales Associates to advertise those rates or fees or prohibit them from doing so. In the event that you or your Sales Associates elect to advertise or promote commission rates or fees, or allow others affiliated with your Office to advertise or promote commission rates or fees, the advertisement shall also include the following notice to the public in a typeface at least one-half the size of the largest typeface used in the advertisement to specify the commission rates or fees being offered: "Different commission rates, fees and services may be offered by other RE/MAX franchisees and sales associates serving this market area. Commissions are negotiable and not set by law." In addition, it shall be the responsibility of the party advertising commission rates or fees to ensure that potential clients fully understand the listing, purchasing, and marketing services that will be provided by that party in the market area.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, a Remax Broker has the authority to allow or prohibit their Sales Associates from advertising commission rates or fees. The document emphasizes that Brokers should maintain independence in determining commission rates and plans.
Remax mandates that neither the Broker nor their Sales Associates should engage in any conduct that could mislead consumers into believing that commission rates or fees are uniform across all Remax offices or are non-negotiable. If a Broker or their Sales Associates choose to advertise commission rates or fees, they must include a disclaimer stating: "Different commission rates, fees and services may be offered by other RE/MAX franchisees and sales associates serving this market area. Commissions are negotiable and not set by law." This disclaimer must be at least half the size of the largest typeface used in the advertisement.
Furthermore, the party advertising the commission rates or fees is responsible for ensuring that potential clients fully understand the listing, purchasing, and marketing services they will receive in return for those fees. This requirement ensures transparency and prevents misleading advertising, aligning with Remax's standards for ethical business practices.