What conduct is prohibited regarding commission rates and fees for Remax offices and agents?
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, franchisees must maintain independence in determining commission rates and plans. Franchisees and their sales associates are prohibited from engaging in any conduct that could mislead consumers into believing that Remax's commission rates or fees are uniform, fixed at a specific level, or non-negotiable. Franchisees are expected to set commission rates and fees independently and have the option to advertise them.
If a Remax franchisee or their sales associates choose to advertise or promote commission rates or fees, the advertisement must include a disclaimer. This disclaimer should state: "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." The disclaimer's typeface must be at least half the size of the largest typeface used to specify the commission rates or fees being offered.
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 provide in the market area. This requirement aims to prevent deceptive advertising and ensure that consumers are well-informed about the services they will receive for the advertised commission rates or fees. This policy ensures transparency and fair competition among Remax franchisees, allowing them to differentiate their services and pricing while adhering to ethical advertising standards.