factual

How does the RE/MAX economic model help attract and retain agents?

Remax Franchise · 2025 FDD

Answer from 2025 FDD Document

RE/MAX was founded in 1973 and its strategy is to sell franchises and help those franchisees recruit and retain the best agents. The RE/MAX brand is built on the strength of the Company's global franchise network and its unique economic model that helps to attract, develop and retain the best-performing and most experienced agents by maximizing their opportunity to retain a larger portion of their commissions.

Source: Item 1 — Business and Organization (FDD pages 334–464)

What This Means (2025 FDD)

According to Remax's 2025 Franchise Disclosure Document, the company's strategy revolves around selling franchises and supporting franchisees in agent recruitment and retention. A key element of the Remax brand is its unique economic model. This model is specifically designed to attract, develop, and retain high-performing and experienced agents. The primary mechanism through which it achieves this is by allowing agents to retain a larger portion of their commissions.

In essence, Remax's economic model aims to empower agents by offering them a more financially rewarding environment compared to traditional real estate brokerage models. By enabling agents to keep a greater share of their earnings, Remax seeks to incentivize top performers and encourage them to remain within the Remax network. This approach is based on the understanding that experienced and successful agents are more likely to be drawn to opportunities where they have greater control over their income and can directly benefit from their hard work and expertise.

For a prospective franchisee, this emphasis on agent retention through commission structures has several implications. It suggests that Remax prioritizes attracting established agents with a proven track record, as these individuals are likely to be most attracted to the potential for higher earnings. Furthermore, franchisees may need to focus on creating a supportive and rewarding environment for their agents to fully capitalize on the benefits of the Remax economic model. This could involve providing resources, training, and marketing support to help agents maximize their commission potential and remain loyal to the Remax brand.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.