On Jan. 1, Re/Max increased the annual dues its agents in the U.S. and Canada pay to affiliate with the brand and the monthly per-agent fees affiliated brokerages in U.S. company-owned master franchise regions pay the franchisor.
After holding steady at $390 for 2011 through 2013, Re/Max agents in the U.S. and Canada now pay $400 in annual membership dues, according to Re/Max’s first annual financial statement as a public company. Re/Max’s agents in the two countries numbered 73,413 as of Dec. 31, 2013, approximately 79 percent of the franchisor’s global total.
In addition, Re/Max-affiliated brokerages in the U.S. master franchise regions the brand owns — which cover 26 states and Washington, D.C. — now pay approximately $123 per month per agent in their region, $3 more than they did in 2011, 2012 and 2013.
Map showing which Re/Max master franchise regions Re/Max owns in the U.S. and Canada. Source: Re/Max 10-K financial statement.
The fee increases for Re/Max, which netted $225 million in an October initial public offering, will feed two of the firm’s largest revenue streams.
In 2013, annual agent membership dues accounted for 19 percent of Re/Max’s $158.9 million full-year revenue, while per-agent “continuing franchise fees” accounted for 40 percent of the year’s revenue.
Re/Max continues to make a push to reacquire its independent master franchise regions in the U.S. and Canada, because it generates so much more revenue as the owner.
Re/Max’s average annual per-agent revenue in company-owned North American regions in 2013 was $2,404 compared with an annual per-agent revenue of $828 in independent regions.