Under what condition is a Remax franchisee required to secure the services of a broker-manager?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
If you or a principal owner does not have a valid real estate broker license, you will be required to secure the services of an individual with a valid real estate broker license under whose license the Office will be conducted and who will be responsible for the management of the Office ("broker-manager"). If you are a corporation, partnership, limited liability company or other business entity, this broker-manager need not have an equity interest in you but will be required to agree in writing to preserve the confidentiality of any confidential information to which he or she has access. You or your principal owner or, if applicable, your brokermanager, will be required to devote his or her full time and best efforts to managing and supervising the Office's operations and, during the term of the Franchise Agreement, will not be permitted to operate, manage, own or have an interest in or become affiliated with in any other way (1) any non-RE/MAX real estate service business; or (2) any other business or enterprise offering products or services that directly or indirectly compete with the products and services offered by RE/MAX offices, RE/MAX Regional, REMAX, LLC, or any of REMAX, LLC's affiliates. Although you or your principal owner will be required to attend Initial Education and Recruiting 101 in their entirety, no similar obligation will be imposed upon the broker-manager and your broker/manager is not required to successfully complete either program.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 80–81)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, a franchisee is required to secure the services of a broker-manager if neither the franchisee nor a principal owner holds a valid real estate broker license. This broker-manager must have a valid real estate broker license and will be responsible for the office's management under their license.
This requirement ensures that each Remax office has qualified supervision. The broker-manager does not need to have an equity interest in the franchisee's business entity, but they must agree in writing to maintain the confidentiality of any confidential information they access. This protects Remax's proprietary information while allowing franchisees flexibility in their management structure.
The broker-manager, or the franchisee/principal owner if they hold the required license, must devote their full time and best efforts to managing and supervising the office's operations. They are also prohibited from being involved with any non-Remax real estate service business or any other business that competes with Remax. This ensures that the franchisee's focus remains solely on the Remax business.
While the franchisee or principal owner must attend Initial Education and Recruiting 101, the broker-manager is not required to attend or complete these programs. This suggests that Remax places greater importance on the franchisee's understanding of the overall business model and recruitment strategies, while the broker-manager's primary responsibility is the day-to-day management of the office.