How are the continuing franchise fees for Remax regional franchise owners and franchisees calculated?
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 Remax's 2025 Franchise Disclosure Document, continuing franchise fees are fixed contractual fees paid monthly. For regional franchise owners in Independent Regions or 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 fee is based on the number of open offices.
The FDD specifies that Motto offices reach the full monthly billing amount once they have been open for 12 months. These continuing franchise fees are recognized by Remax in the month for which the fee is billed. Remax considers these fees a usage-based royalty because they depend on the number of Remax agents or Motto offices.
Prospective franchisees should understand that the more agents they recruit (for Remax franchises) or offices they open (for Motto franchises), the higher their continuing franchise fees will be. This structure incentivizes growth but also means that fees can fluctuate as agent counts change. It is important to note that the fees are fixed contractual amounts, providing some predictability, but the total amount payable will vary with the scale of the franchisee's operations.