How Brokerage Conversions Affect Agent Careers: A Guide for Agents Facing a Switch

Facing a franchisor switch? Why this matters for your career — fast

When your brokerage changes franchisor, your livelihood can change overnight. Commissions, lead flows, branding, training and even MLS access can shift — and many agents learn the hard way because they weren’t prepared. The recent REMAX conversion of two major Toronto firms (about 1,200 agents across 17 offices, including 16 in the Greater Toronto Area) is a timely example of how large-scale franchise switches reshape local careers. Use this guide to evaluate risks, spot opportunities and act with a 30/90-day plan that protects your income and momentum.

Quick takeaways (most important first)

• Compensation is negotiable — don’t accept new splits or fees without a clear comparison to real earnings.
• Leads and tech are the new base pay — ask how lead management, CRM and AI tools (chatbots, predictive lead scoring) will change your pipeline.
• Brand power ≠ local business maintenance — a global name can open referrals but won’t automatically replace local marketing you already do.
• Training and onboarding matter — look for actionable, role-specific programs, not generic webinars.
• If you plan to stay, get promised changes in writing and a transition timeline covering listings, client data and compliance.

What happened in Toronto — the REMAX conversion as a case study

In late 2025 REMAX announced the conversion of two Royal LePage firms led by the Risi family to do business as REMAX Your Community Realty and REMAX Connect Realty. The move brought roughly 1,200 agents and 17 offices into REMAX’s global network, with the Risi family retaining local leadership. REMAX cited its expanded technology, marketing and global presence — the same selling points franchisors often present when recruiting or converting branches.

“Their decision reflects the strength of the REMAX brand and reinforces our current strategic direction,” REMAX CEO Erik Carlson said, noting advancements in technology, marketing, social media and global reach.

That public rationale highlights why many agents feel optimistic about a franchise switch — but optimism needs verification. Below I translate the Toronto example into an evaluation framework you can use the moment your office shifts franchisors.

How to evaluate a franchisor conversion — the fields that affect your paycheck and growth

1. Agent compensation and fee structure

Comp plans are the most immediate impact. When a new franchisor arrives, you might see changes in splits, caps, desk fees, marketing fees or royalty percentages.

• Ask for a side-by-side of current vs new: gross commission split, cap/thresholds, desk/transaction fees, referral fees.
• Calculate your effective take-home using your last 12 months of closed volume. Don’t use averages — use your actual production to model scenarios.
• Negotiate transitional offers. Converting groups (like the Risi-led firms) often secure limited-time incentives—reduced splits or waived fees—to keep producers onboard.
• Watch for hidden fees: branding/marketing co-op, mandatory technology subscriptions, CRM or franchise dues can erode margin.

2. Branding, marketing and lead generation

Being part of a global brand gives you referral networks and name recognition, but it doesn’t automatically translate into more local leads.

• Ask what marketing is centrally funded vs agent-paid. Who pays for lead-gen ad spend, SEO, social media and open-house promotion?
• Request historical lead volume benchmarks if available. How many agent-level leads does the franchisor generate per month in your market?
• Clarify ownership: if marketing creates a lead for your office, who owns it — the office, the franchisor or the individual agent?
• Check for co-branding restrictions and signage transition rules — how long will you be permitted to use old materials while new collateral is produced?

3. Lead management, CRM and technology stack

In 2026 most brokerages differentiate on tech: AI lead scoring, automated follow-ups and integrated MLS-to-CRM flows are becoming baseline. REMAX emphasized technology improvements during the Toronto conversion — and that’s where agents should ask pointed questions.

• Which CRM will you be required to use? Is it free or paid? Can you export your contacts and transaction history?
• How does lead routing work? Automated distribution often favors higher-producing teams unless contractual protections exist.
• Are there AI tools (chatbots, predictive lead scoring) and who controls the data and model outputs?
• Request a demo of the lead lifecycle: from lead capture to appointment set to closed transaction reporting.

4. Training programs, coaching and continuing education

Training is the friction point between joining a brand and actually profiting from it. Generic webinars are common — what matters is role-specific, repeatable coaching that improves conversion rates.

• Ask for the training curriculum and schedules for the first 90 days. Look for trackable outcomes (conversion rate improvements, average days on market reductions) rather than attendance logs.
• Is coaching mandatory and personalized? High-performing agents should be offered advanced marketing, negotiation and business planning tracks.
• Check for mentorship or team support for new agents. If the franchisor claims strong training, request referrals from agents who joined in the last 12 months.
• Training in 2026 should include AI literacy — how to use generative tools ethically in listing input, buyer communication and marketing asset creation.

5. Client data, compliance and legal issues

Client records are often the most contentious item in a conversion. You must know how your CRM, escrow records and active listings migrate — and whether you retain the right to move with your clients if you leave later.

• Request a written policy on data portability. Can you export client lists and communication histories? In Ontario, be mindful of privacy regulations and obligations to the Real Estate Council of Ontario (RECO).
• Who retains marketing assets tied to listings? If the franchisor takes over signage, ask how in-process deals are handled.
• Confirm transaction closing procedures and escrow control during the transition window to avoid funding delays.

6. Office leadership, culture and retention

Brand switches sometimes bring leadership changes; sometimes local teams stay intact. The Risi family retained leadership in the REMAX conversion, which helped continuity. Evaluate whether leadership signals stability or upheaval.

• Who will be the local broker of record and what’s their cut in decision-making for office-level marketing and recruiting?
• Ask current peers how the office handled past transitions. Retention rates after a conversion are telling — high attrition suggests deeper issues.
• Culture shifts matter: franchisors with strong national KPIs may deprioritize local agent autonomy. Decide which you prefer.

7. Career path and growth opportunities

Consider whether the new franchisor enables the next stage of your career: team-building, brokerage ownership, leadership roles or international referrals.

• Does the franchisor have incentives for building teams? Are there clear splits and structures for team leads?
• Is there a path to become an office owner or franchisee under the new brand?
• Does the global brand facilitate international buyer/seller referrals, which are especially relevant in Toronto’s market?

Red flags and deal-breakers

• No written transition plan for listings and client data.
• Mandatory tech you cannot export data from, or high mandatory subscription costs.
• Unexplained increases in transaction fees or royalty percentages without commensurate new services.
• High attrition among local agents immediately after the announcement.
• Vague answers on lead ownership and distribution.

Questions to ask at the conversion town hall (print this list)

1. What is the exact compensation model for agents and teams? Provide example math for low-, mid-, and high-producers.
2. What tech tools are mandatory, optional and paid by whom?
3. How will leads be generated, distributed and owned?
4. What training will be offered in the next 30/60/90 days, and what outcomes will you measure?
5. How will current listings, commission agreements and client files be handled legally during the switch?
6. Can we see agent references who converted to the franchisor in the last 12 months?

Negotiation tactics agents rarely use (but should)

• Request a transitional compensation guarantee for 6–12 months that mimics your current net take-home if the new model would reduce it.
• Negotiate a promotional budget credit for first-year marketing to offset rebranding costs. (Ask about print credits and sign budgets — see our printing guide.)
• Ask for a written clause ensuring data export rights and a timeline for data migration.
• If you’re a producer, negotiate protected lead routing or a minimum number of centrally generated leads for your desk for a period.

30- and 90-day action plan if your brokerage converts

Days 0–30: Stabilize and document

• Collect written documentation: compensation comparisons, tech requirements, data policies and a transition timeline.
• Export your CRM and backup client communications (email, SMS, transaction notes) immediately where permitted.
• Communicate proactively with top clients explaining continuity and confirming you’re their agent — preserve trust.
• Attend all official briefings and take detailed notes; ask for recordings and written FAQs.

Days 31–90: Test, negotiate and decide

• Run parallel assumptions on income under the new structure — create a conservative and optimistic forecast.
• Test the new lead pipeline and tech tools. If the CRM is mandatory, use it for a sample cohort so you can compare conversion rates.
• Negotiate transitional terms if your modeled income drops. Use your 12-month earnings to justify concessions.
• Decide: stay and leverage new brand advantages, or prepare a careful transition to another brokerage ensuring client continuity and regulatory compliance.

Toronto-specific considerations (local rules & advantages)

In Toronto and Ontario more broadly, agents must work within RECO regulations and MLS rules that affect how listings and commissions are handled during transitions. Two practical points:

• Confirm MLS board access and any required re-listing steps. Delays here can cost deals.
• Toronto’s international buyer pool means global referral networks (like REMAX’s) can be an advantage — but only if the franchisor provides effective referral systems and credits.

2026 trends agents should factor into their decision

Late 2025 and early 2026 have accelerated several trends that change the calculus of a franchise switch:

• AI-driven lead scoring and automation are now common. Winning franchisors provide tools that save time and increase conversion — but ensure you control your data and understand how models prioritize leads.
• Consolidation and franchisor migration continue. Large franchisors are buying or converting regional players to scale technology and marketing efficiencies.
• Hybrid compensation models (smaller splits but higher lead guarantees or subscription-based desk fees) are becoming more prevalent.
• Greater regulatory scrutiny on data portability and privacy means written policies are essential. Expect more formal data-export requirements in 2026.

Sample short email to request documents

Use this to follow up after a town hall:

Hi [Broker/Office Manager],

Thanks for today’s update. Per our discussion, could you please send the written transition plan, the new compensation matrix, the tech/CRM policy and the data migration/export policy? I’d like to review these documents this week to model the financial impact.

Thanks, [Your Name]

Real decisions — stay, negotiate or leave?

There’s no universal answer. Many agents prosper after converting to a global brand if they receive demonstrable lead flow, improved tech and training that increases conversion. Others leave because new fees or loss of local autonomy reduce income. Use the framework above to make an evidence-based decision — and don’t hesitate to negotiate transitional protections.

Final checklist before you sign anything

• Written compensation comparison and transitional guarantees (if any).
• Clear policy on client data ownership and exportability.
• Detailed list of mandatory tech and pricing for subscriptions.
• Training schedule with measurable outcomes.
• Documented plan for existing listings and escrow handling.
• References from recently converted agents/offices.

Conclusion — act like an entrepreneur, plan like a pro

Brokerage conversions — like REMAX’s Toronto move — create both opportunity and risk. Think like a small business owner: quantify how the switch affects your take-home pay, test new tools before relying on them, and protect client data and listings with written agreements. Use our 30/90-day playbook, the town-hall questions and negotiation tactics to turn change into a career-boosting move instead of a setback.

Call to action

Ready to evaluate your specific situation? Download our free Brokerage Conversion Checklist and sample negotiation templates, or book a 1:1 career consultation with a specialist who helps agents model compensation and negotiate transition terms. Don’t wait — your next listing and your clients’ trust depend on decisions you make this month.

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