A mature, medium-density RE/MAX standard residential Office with 12 billed Sales Associates may generate roughly $11,000 to $99,000 in annual pre-tax, pre-financing owner earnings under the three scenarios below. When the owner replaces a paid full-time Manager, the modeled owner-operator benefit is about $78,000 to $166,000; that higher figure includes compensation for the owner’s labor and is not passive business profit.
- Legal entities
- RE/MAX, LLC is the franchisor and system owner; RE/MAX Integrated Regions, LLC is the subfranchisor for Connecticut, Indiana, Maine, Massachusetts, Minnesota, New Hampshire, Rhode Island, Vermont, and Wisconsin.
- Disclosure reviewed
- RE/MAX Integrated Regions, LLC Franchise Disclosure Document issued April 2, 2026 and amended April 28, 2026.
- Item 19 status
- No financial performance representation: no disclosed Office sales, operating profit, EBITDA, net income, cash flow, or owner compensation.
- Modeled cohort
- A standard residential Office in a medium-density market, months 37 through the end of the term, with 12 Sales Associates—the disclosed Minimum Agent Count for that cohort.
- External benchmarks
- May 2024 BLS median wage for property, real estate, and community association managers; 2023 IRS Statistics of Income data used only as broad industry context, not as a RE/MAX profit margin.
- Date checked
- July 16, 2026.
Does the RE/MAX FDD disclose how much an owner earns?
No. This is an official finding for the 2026 RE/MAX Integrated Regions, LLC FDD and its U.S. standard Office, Team Office, and Commercial Office formats. Item 19 states that the subfranchisor does not make representations about a franchisee’s future financial performance or the past performance of company-owned or franchised outlets.
That means there is no official average revenue, median revenue, profit margin, owner salary, distribution, or cash-flow number to quote. Item 20 also reports no company-owned Offices, so there is no company-operated unit economics proxy in this disclosure. RE/MAX Holdings likewise describes the RE/MAX brokerage network as 100% franchised on its official investor overview.
What does the strongest evidence actually measure?
The strongest official evidence measures the structure of the Office economics, not the outcome. For the modeled 2026 Current Plan cohort, the FDD identifies per-associate franchise fees, a 1% Broker Fee on Sales Associate Revenue, the Minimum Agent Count, required management, and the owner’s ability to charge Sales Associates management fees and overhead contributions.
The FDD also says Sales Associates typically retain 95% of commissions. The scenario therefore models a 5% Office commission share, but actual commission arrangements may differ. More importantly, the FDD does not disclose the management fee or overhead contribution that an Office charges its Sales Associates. That undisclosed amount is the largest revenue assumption in the model.
FDD citations: 2026 RE/MAX Integrated Regions, LLC FDD, Item 1, pp. 7–8; Item 6, pp. 19–32; Item 19, p. 74; Item 20, pp. 75 and 79.
How was the annual owner-earnings range calculated?
The range is estimated for one mature, medium-density, standard residential Office with 12 billed Sales Associates. Each scenario calculates modeled Office revenue, subtracts normal Office operating costs and recurring franchise obligations, and then separates manager-run owner earnings from owner-operator labor value.
| Input | Conservative | Base | Upside |
|---|---|---|---|
| Sales Associates / annual transaction sides per associate | 12 / 12 | 12 / 12 | 12 / 12 |
| Gross commission revenue per transaction side | $6,000 | $7,000 | $8,000 |
| Monthly Office contribution charged per associate | $1,350 | $1,650 | $1,950 |
| Modeled Office commission share | 5% | 5% | 5% |
| Other annual Office operating costs | $100,000 | $105,000 | $110,000 |
| Paid Manager wage proxy | $66,700 | $66,700 | $66,700 |
- Official FDD inputs: 12-associate mature medium-density Minimum Agent Count; $170 monthly Continuing Franchise Fee, $127 monthly Marketing Fee, and $410 Annual Dues per billed associate; 1% Broker Fee; current Technology Fee of $0; and up to $275 monthly for QuickBooks Online.
- Derived FDD input: fixed recurring franchise charges equal $3,974 per billed associate annually, or $47,688 for 12 associates, before the 1% Broker Fee.
- Editorial revenue assumptions: 12 transaction sides per associate, gross commission revenue per side, and the monthly Office contribution. The FDD does not disclose these values.
- Editorial operating-cost assumption: the $100,000–$110,000 bucket covers occupancy, non-manager administration and payroll burden, local promotion, insurance, licensing, professional services, software other than separately shown QuickBooks, and routine operating costs.
- Excluded from owner earnings: personal income taxes, financing interest and principal, depreciation, capital expenditures, acquisitions, and the initial investment in Item 7.
The formula is: modeled Office revenue = associate contributions + 5% modeled commission share. Manager-run owner earnings then equal modeled Office revenue minus fixed franchise charges, the 1% Broker Fee, QuickBooks, other operating costs, and the Manager wage. Owner-operator benefit adds back only the Manager wage because the owner is assumed to perform that full-time work.
What do the conservative, base, and upside cases produce?
The estimated manager-run result is approximately $11,000, $55,000, and $99,000 across the Conservative, Base, and Upside cases. For the same modeled Office and period, owner-operator benefit is approximately $78,000, $122,000, and $166,000, including the market value of full-time management labor.
Pre-tax and before financing for the modeled 12-associate Office.
Includes $66,700 of labor value for replacing the paid Manager.
CFF, Marketing Fee, and Annual Dues in the selected state group.
Applied to FDD-defined Sales Associate Revenue, not Office profit.
May 2024 national BLS median; local licensed-broker pay may differ.
Year-end 2025 count; Item 20 provides no earnings sample.
USD thousands; owner-operator benefit includes labor performed by the owner.
Interpretation: owner involvement adds labor value but does not improve the underlying Office economics by itself. Sources: 2026 FDD Items 6, 12, and 15; BLS May 2024 wage benchmark; editorial assumptions shown above. Values rounded to the nearest $1,000.
How does modeled Office revenue become owner earnings?
In the estimated Base case, $288,000 of modeled Office revenue becomes about $55,000 of manager-run owner earnings after recurring franchise charges, the Broker Fee, required accounting software, normal operating costs, and a paid Manager. The result applies only to the modeled mature 12-associate Office.
USD thousands; each deduction lowers the cumulative amount available to the owner.
Interpretation: the Base case leaves a 19.2% modeled manager-run margin on Office revenue, but that margin is derived from assumptions, not reported by RE/MAX. Source treatment: franchise charges are official or derived from Item 6; revenue and other operating costs are editorial scenarios; the Manager wage is a BLS proxy.
How does owner involvement change the result?
Owner involvement changes who receives the management compensation, not whether the Office automatically becomes more profitable. This is an estimated comparison for the same mature 12-associate Office. The 2026 FDD permits a manager-run structure, but if the owner does not supervise on site, the franchisee must hire a full-time Manager who holds the required state real estate broker or managing-broker license.
- Manager-run owner earnings
- Residual operating cash after the modeled Manager wage and normal unit-level costs, but before personal taxes, financing, depreciation, and capital expenditures. Base scenario: approximately $55,000.
- Owner-operator benefit
- Manager-run residual plus the $66,700 national Manager wage proxy because the owner performs the full-time management role. Base scenario: approximately $122,000. Part is labor compensation, not passive profit.
- Owner salary or draw
- A payment method, not a separate economic gain. Salary, draw, and distributions should not be added again to the modeled benefit unless they represent distinct, non-duplicated cash flow.
- After-tax take-home pay
- Not estimated. Federal and state taxes depend on legal entity, elections, deductions, location, and the owner’s personal circumstances.
The BLS manager wage benchmark reports a May 2024 national median of $66,700 and a real-estate-industry median of $63,680 for the broader occupation. A licensed brokerage Manager may cost more or less depending on state law, experience, incentives, benefits, and local labor conditions. The scenario uses $66,700 as a transparent wage proxy rather than claiming it is the RE/MAX salary; employer payroll taxes and Manager benefits are not separately modeled and could reduce manager-run earnings.
What makes the earnings range uncertain?
The largest uncertainty is Office revenue retained from Sales Associates. This is an uncertain, scenario-based conclusion for the selected 2026 format because Item 19 does not disclose the amount an Office charges agents, the Office’s actual share of commissions, revenue per transaction, agent productivity by Office, or operating expenses.
- Agent economics: verify the exact commission split, desk or management fees, overhead contributions, transaction charges, caps, concessions, uncollected balances, and recruiting incentives for the target Office.
- Agent count: obtain monthly active Sales Associate history and compare it with the Minimum Agent Count. Falling below MAC may reduce Office receipts without reducing the billed CFF and Marketing Fee.
- Production: obtain closed sides, gross commission income, referral income, cancellations, and concentration by top producers for at least three years.
- Operating costs: confirm rent, administrative payroll, Manager compensation, insurance, local promotion, technology, professional services, licensing, and required education.
- Format and state: do not apply this medium-density standard Office model to a Team Office, Commercial Office, high-density MAC cohort, Indiana fee schedule, or Minnesota/Wisconsin fee schedule without rebuilding it.
- Financing and capital needs: deduct interest and principal separately and budget for capital expenditures. Item 7 startup investment is not an annual operating expense and is not subtracted in this model.
Does Item 20 improve confidence in the earnings estimate?
No. Item 20 officially reports outlet counts and changes, not revenue or owner earnings. RE/MAX Integrated Regions ended 2025 with 450 franchised Offices and no company-owned Offices, down from 475 at the start of the year. Closures, non-renewals, transfers, and system counts are useful diligence signals, but they do not establish why an individual Office changed status or how much an owner earned.
The IRS nonfarm sole-proprietorship statistics include receipts, deductions, and net income for a broad category combining real estate agents, brokers, property managers, and appraisers. Those tax returns mix individual practitioners with businesses and include owner labor, so their aggregate margin is not used as a RE/MAX Office margin. The 2022 Economic Census real-estate tables similarly provide industry context but do not supply a comparable RE/MAX owner-earnings measure.
What is the strongest defensible earnings answer?
The strongest defensible answer is a scenario range, not an official RE/MAX earnings claim: approximately $11,000 to $99,000 of annual manager-run pre-tax, pre-financing owner earnings for the modeled mature 12-associate standard residential Office, or approximately $78,000 to $166,000 of owner-operator benefit when the owner replaces a paid full-time Manager.
The most important earnings driver is the spread between what the Office retains from Sales Associates and the cost of maintaining the platform, staff, occupancy, franchise obligations, and recruiting engine. The largest unresolved uncertainty is that Item 19 discloses no Office revenue or expense distribution. The next diligence step is therefore not to rely on the midpoint: request written substantiation for any financial claim, review the target Office’s general ledger and associate agreements, and interview current and former franchisees listed through Item 20 about agent-fee collections, production, staffing, and owner workload.
Primary disclosure citations: 2026 RE/MAX Integrated Regions, LLC FDD, cover and amendment; Item 5, pp. 18–19; Item 6, pp. 19–32; Item 7, pp. 33–35; Item 12, pp. 59–60; Item 15, p. 65; Item 19, p. 74; Item 20, pp. 75–79.