By what day of the month is the Component Two Continuing Franchise Fee due to Remax?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to pay us, as a Component Two Continuing Franchise Fee, an amount equal to 1% of gross commissions (including referral fees) and other revenue earned, derived or otherwise generated from Permitted Real Estate Service Activities (defined in Subsection 2.A.(2) above) handled by each one of your Sales Associates during the previous calendar month whether or not you actually collect a "Broker Service Fee", as recommended below. This Component Two Continuing Franchise Fee is due and will be considered late if not received by us by the 10th day of the month after the month the Office opens and by the 10th day of each month throughout the remainder of the Term of this Agreement.
In addition to the monthly management fee referred to in Subsection 6.B.(1) above, we recommend that you retain a small percentage of the gross commissions (including referral fees), earned, derived or otherwise generated from Permitted Real Estate Service Activities handled by your Sales Associates ("Broker Service Fee"). As of the Agreement Date we recommend, but do not require, that your Broker Service Fee be 5%.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the Component Two Continuing Franchise Fee is due by the 10th day of each month. This fee covers the previous month's activities.
The Component Two Continuing Franchise Fee is equal to 1% of gross commissions, including referral fees, and other revenue generated from real estate service activities handled by each of the franchisee's Sales Associates. This applies whether or not the franchisee actually collects a Broker Service Fee from their Sales Associates.
Remax recommends, but does not require, that franchisees retain a Broker Service Fee of 5% of gross commissions from their Sales Associates. However, the franchisee's obligation to pay the Component Two Continuing Franchise Fee to Remax is not dependent on whether they collect this Broker Service Fee from their Sales Associates. Failing to collect the Broker Service Fee from sales associates does not relieve the franchisee of their obligation to remit the required amount to Remax in a timely manner.