When are the continuing franchise fees recognized for Remax franchisees?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
Continuing franchise fees are fixed contractual fees paid monthly (a) by regional franchise owners in Independent Regions or franchisees in Company-Owned Regions based on the number of RE/MAX agents in the respective franchised region or office or (b) by Motto franchisees based on the number of open offices. Motto offices reach the full monthly billing once the Motto office has been open for 12 months. Continuing franchise fees are recognized in the month for which the fee is billed and are a usage-based royalty as they are dependent on the number of RE/MAX agents or the number of Motto open offices.
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, continuing franchise fees are recognized in the month for which the fee is billed. These fees are considered a usage-based royalty because they depend on the number of Remax agents in a franchised region or office, or, in the case of Motto Mortgage franchises, the number of open offices.
For Remax franchisees, these fees are fixed contractual amounts paid monthly by regional franchise owners in Independent Regions or by franchisees in Company-Owned Regions. The fee is based on the number of Remax agents in their respective franchised region or office.
For Motto Mortgage franchisees, the continuing franchise fees are also fixed contractual fees paid monthly, but they are based on the number of open offices. However, Motto offices only reach the full monthly billing amount once the office has been open for 12 months. This means a new Motto Mortgage office will not be billed the full continuing franchise fee for the first year of operation.