What is a Remax franchisee required to include in their Independent Contractor Agreements with Sales Associates?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
Although the form of agreement you use is up to you, you are required to have in place a fully executed and in force written ICA with each of your Sales Associates that includes the Essential ICA Provisions. The current Essential ICA Provisions are set out in Exhibit B attached hereto and you shall cause these Essential ICA Provisions to be incorporated into each and every ICA you enter into or renew with your Sales Associates. As future changes, additions or modifications to the Essential ICA Provisions are promulgated by REMAX, LLC, you will have 60 days within which to amend your ICA form to include the new Essential ICA Provisions. You then shall use that amended, compliant ICA form, or some alternative compliant ICA form, for all of your new and renewal ICAs so that at the end of the 12-month period following the amendment of your ICA, all of your Sales Associates will be parties to an ICA containing the most current Essential ICA Provisions.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, franchisees must include certain essential provisions in their Independent Contractor Agreements (ICAs) with Sales Associates. While franchisees can develop their own ICA forms, these must not undermine the rights and interests of the Remax network or expose Remax, LLC to potential liability. These essential provisions aim to preserve the reputation and goodwill associated with the Remax brand and protect the interests of the entire network.
The FDD specifies that Remax, LLC may modify or amend these essential ICA provisions, and such changes become binding on franchisees 60 days after notice. These provisions do not govern the day-to-day operations of the franchisee's office but are designed to protect the Remax marks and associated goodwill. Remax, LLC has developed a Model ICA that franchisees can use as a framework, although using the Model ICA is not mandatory as long as the franchisee's ICA includes the Essential ICA Provisions.
It is important to note that the Essential ICA Provisions do not include many recommended provisions from the Model ICA, including those necessary to establish an independent contractual relationship or ensure "Statutory Non-Employee" treatment for federal tax purposes. Therefore, Remax strongly recommends franchisees consult with legal counsel to review their ICA and ensure compliance with applicable laws. Franchisees are responsible for determining if any edits are necessary to comply with state-specific laws, rules, regulations, local business practices, and customs, and to ensure the ICA meets their business and tax needs. The current Essential ICA Provisions are detailed in Exhibit B of the Franchise Agreement, and franchisees must incorporate these into every ICA they enter into or renew with their Sales Associates.