In the Remax BTRN program, what does 'Gross Commission' refer to regarding a Receiving Broker/Agent?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
- f. "Gross Commission" means the amount a Receiving Broker/Agent receives following a Completed Transaction prior to any splits or concessions with any other brokers or Agents for the referred side of the transaction.
- g. "Referral Percentage" means the percentage of the Gross Commission that will be paid by the Receiving Broker/Agent to BTRN.
- h. "Referral Fee" means the dollar amount due or paid to BTRN by the Receiving Broker/Agent as the result of a Completed Transaction.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, the Gross Commission within the BTRN (presumably, Broker Technology Referral Network) program refers to the total amount a Receiving Broker/Agent earns from a Completed Transaction before any deductions. This is prior to any splits or concessions with other brokers or agents involved in the referred side of the transaction. In simpler terms, it's the initial, unadjusted commission earned from a deal involving a client referred through the BTRN program.
For a prospective Remax franchisee, understanding this definition is crucial because the Referral Percentage, which is 30 percent unless otherwise negotiated, is calculated based on this Gross Commission. This means that Remax takes 30% of the gross commission before any splits or concessions are applied. This can significantly impact the profitability of transactions involving BTRN-referred clients.
For example, if a Receiving Broker/Agent closes a deal with a Referred Client and earns a Gross Commission of $10,000, the Referral Fee due to BTRN would be $3,000 (30% of $10,000). The Receiving Broker/Agent would then split the remaining $7,000 with their brokerage according to their existing agreement. This highlights the importance of factoring in the Referral Fee when evaluating the potential financial benefits of participating in the BTRN program.
It is also important to note that the Referral Fee is paid for each Referred Client that results in a Completed Transaction within two years of the referral. If the agent assists a client with both the sale and purchase of properties within that two-year window, the Referral Fee applies to both transactions. However, no Referral Fee is due on subsequent transactions with the same Referred Client after the initial sale and purchase.