What specific notice regarding commission rates or fees must a Remax Contractor include in any advertisement if the Broker allows such advertisement?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
If Broker allows the advertisement of commission rates or fees, Contractor shall assure that any such advertisement includes the following notice, in prominent letters no smaller than one half the font used for displaying the commission rates or fees: **"Different commission rates, fees and services may be offered by other RE/MAX franchisees and sales associates serving this market area.
Commissions are negotiable and not set by law."** In addition, it shall be the responsibility of Contractor to make sure that potential clients fully understand the services that will be provided by Contractor in the market area in return for the commission rates or fees advertised.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, if a Remax Broker allows a Contractor to advertise commission rates or fees, the Contractor must include a specific notice in the advertisement. This notice must be displayed in letters no smaller than one-half the font size used for displaying the commission rates or fees themselves.
The required notice states: "Different commission rates, fees and services may be offered by other RE/MAX franchisees and sales associates serving this market area. Commissions are negotiable and not set by law." Additionally, the Contractor is responsible for ensuring that potential clients fully understand the services they will receive in return for the advertised commission rates or fees.
This disclosure aims to prevent consumers from assuming that all Remax offices or agents offer uniform commission rates or fees. It emphasizes that commissions are negotiable and can vary among franchisees and sales associates within the same market area. This requirement ensures transparency and helps consumers make informed decisions by understanding the potential differences in pricing and services offered by various Remax representatives.
For a prospective Remax franchisee, this means that while they have the autonomy to set their own commission rates, they must also adhere to the disclosure requirement if they choose to advertise those rates. Failing to include the specified notice could lead to non-compliance issues with Remax's advertising standards.