Under what conditions are Remax agents in Company-Owned Regions exempt from paying broker fees, and what percentage of agents in the U.S. and Canada Company-owned Regions did not pay broker fees as of December 31, 2024?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
Agents in Company-Owned Regions who joined RE/MAX prior to 2004, the year the Company began assessing broker fees, are generally "grandfathered" and continue to be exempt from paying a broker fee. Certain agents in Canada do not pay broker fees. As of December 31, 2024, approximately 23% of agents in the U.S. and Canada Company-owned Regions did not pay broker fees. Motto franchisees do not pay any fees based on the number or dollar value of loans brokered.
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, certain Remax agents in Company-Owned Regions are exempt from paying broker fees. Specifically, agents who joined Remax before 2004, when the company began assessing these fees, are generally "grandfathered" and do not have to pay them. Additionally, some agents in Canada are also exempt from broker fees. As of December 31, 2024, approximately 23% of agents in the U.S. and Canada Company-owned Regions did not pay broker fees.
For a prospective franchisee, this information is relevant for understanding the revenue structure and potential variations in fees paid by agents within the Remax system. The grandfathering policy could impact the overall revenue generated from broker fees in Company-Owned Regions, as a portion of agents are exempt. The 23% figure gives an idea of the magnitude of this impact.
It's important to note that these exemptions apply specifically to Company-Owned Regions. Franchisees in independently owned regions may have different fee structures and policies. A potential franchisee should inquire about the specific fee arrangements in their target region to fully understand the financial implications.