When is the Unreported Agent Payments fee incurred by a Remax franchisee?

According to Remax's 2025 Franchise Disclosure Document, the Unreported Agent Payments fee is incurred when a franchisee fails to report Sales Associates affiliated with their office. This fee includes a $1,000 Unreported Agent fee, plus all Monthly Ongoing Fees, Annual Dues, and Marketing Fund fees. These additional fees are calculated retroactively, starting from the earliest date that Remax determines the individual was either licensed with the franchisee's office or was an Unreported Agent as defined in the Franchise Agreement.

For a prospective Remax franchisee, this means it is crucial to accurately and promptly report all Sales Associates to Remax. Failure to do so can result in significant financial penalties beyond just the initial $1,000 fee. The retroactive application of Monthly Ongoing Fees, Annual Dues, and Marketing Fund fees can quickly add up, especially if the unreported agent has been affiliated with the office for an extended period.

This policy incentivizes franchisees to maintain transparent and accurate records of their Sales Associates. It also protects Remax's revenue stream by ensuring that all agents affiliated with a franchise are properly accounted for and that the corresponding fees are paid. Franchisees should establish clear internal procedures for tracking and reporting Sales Associates to avoid incurring these potentially substantial Unreported Agent Payments.