If a Remax Sales Associate manages or compensates an unlicensed person, is that person considered an 'Unreported Agent'?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
ilaterally terminate, to seek an Early Termination by negotiation with us, or to Abandon this Agreement prior to the expiration of the Term. Nothing in this Subsection shall be construed to impose an obligation on REMAX, LLC to negotiate an Early Termination with you. Nothing in this Subsection will prevent or preclude REMAX Regional from seeking or receiving Intangible Damages and any and all other damages or remedies to which we may be entitled at law or in equity.
M. UNREPORTED AGENTS.
For purposes of the provisions of this Section 6 of this Agreement "Unreported Agent" means each person who possesses a state real estate license that is not registered with the Office or any Team Office, who is not shown in the RE/MAX Roster as an affiliate of the RE/MAX Network and is otherwise not authorized to use the RE/MAX Marks, but who is providing any real estate related services on a regular basis that benefit any Sales Associate or the Office or any Team Office or who is linked or tied to any Sales Associate or the Office or any Team Office in such a way that they make unauthorized use of or benefit directly or indirectly from the RE/MAX Marks.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, a person can be considered an 'Unreported Agent' if they are managed or compensated by a Remax Sales Associate. Specifically, an 'Unreported Agent' is defined as someone with a state real estate license not registered with the Office or any Team Office, not listed in the RE/MAX Roster, and not authorized to use the RE/MAX Marks. This individual must also be providing real estate-related services regularly that benefit any Sales Associate, the Office, or any Team Office, or be linked to them in a way that allows unauthorized use of or benefit from the RE/MAX Marks.
The FDD lists several examples of how an agent can be linked to a Sales Associate or office, leading to them being classified as an 'Unreported Agent'. One such example is if the person is managed by a Sales Associate or is compensated by a Sales Associate or someone affiliated with the Office or Team Office. This also applies if the person is directly or indirectly subject to the direction or control of a Sales Associate.
This definition has significant implications for Remax franchisees. It means franchisees must be vigilant about who their Sales Associates are working with and how they are structured. If a Sales Associate manages or compensates an unlicensed individual who is not properly registered with Remax and is benefiting from the Remax brand, the franchisee could face penalties. These penalties can include being required to pay Monthly Ongoing Fees, Annual Dues, and Marketing Fund fees on behalf of the Unreported Agent, as well as a $1,000 Unreported Agent fee, retroactively applied to the period the individual was considered an Unreported Agent. Therefore, it is crucial for franchisees to ensure all individuals providing real estate services under their umbrella are properly licensed, registered, and authorized to use the Remax Marks to avoid these financial repercussions and potential termination of the franchise agreement.