What information must a Remax franchisee include in the monthly statement regarding sales associates?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
of approved suppliers as well as the RE/MAX Roster. All information in the RE/MAX Roster and roster of approved suppliers is owned by REMAX, LLC and is considered confidential and proprietary.
10. RECORDS AND REPORTS.
A. ACCOUNTING AND RECORDS.
During the Term, you agree to establish and maintain record keeping and accounting systems conforming to the requirements prescribed by us from time to time. All books and records of the Office shall be maintained at the Premises.
B. REPORTS.
You agree to furnish us in the form we prescribe from time to time:
(1) Sales Associates and Gross Commissions Earned.
Within 5 days after the close of each calendar month a statement listing each Sales Associate whose license is registered with your Office or any Team Office and, for each Sales Associate, the gross commissions earned and the number of transactions closed.
a. Calculating Amounts Due in Absence of Reports.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, franchisees must submit a monthly statement within 5 days after the close of each calendar month. This statement should list each sales associate whose license is registered with the Remax office or any team office. For each sales associate, the statement must include the gross commissions earned and the number of transactions closed during that month.
If a Remax franchisee fails to submit this statement on time, the number of sales associates for calculating monthly ongoing fees and marketing fund fees will be determined as the greater of three options: the actual number of sales associates, the number of sales associates required under Section 7 of the agreement, or the average number of sales associates reported for that month in the last two years, plus 10%. This ensures that Remax receives the appropriate fees even if the franchisee does not provide the required report.
Failure to report the sales associates in a timely manner is considered a material default of the Remax franchise agreement. This means that Remax can take action against the franchisee for not complying with the reporting requirements. This clause highlights the importance of accurate and timely reporting to Remax, as it directly impacts the calculation of fees and the franchisee's compliance with the agreement.