What is the unique economic model of RE/MAX designed to do for its agents?
Remax Franchise · 2025 FDDAnswer 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 the 2025 Remax Franchise Disclosure Document, Remax's business strategy involves selling franchises and assisting franchisees in agent recruitment and retention. The Remax brand distinguishes itself through a unique economic model. This model is specifically designed to attract, develop, and retain high-performing and experienced agents. It achieves this by maximizing the agents' opportunity to keep a larger portion of their commissions.
In essence, Remax aims to empower its agents financially by allowing them to retain more of their earnings. This can be a significant draw for experienced agents who are looking for a brokerage that rewards their performance more directly. The focus on agent retention suggests that Remax recognizes the value of experienced professionals and seeks to create an environment where they are incentivized to stay with the brand.
For a prospective franchisee, this emphasis on agent compensation could translate to a more competitive and productive team. However, it also implies that Remax franchisees need to be adept at recruiting and managing high-performing agents, as their success is closely tied to the agents' ability to generate revenue and their satisfaction with the commission structure. This model may require a different approach to franchisee-agent relationships compared to traditional real estate brokerage models with lower commission splits.