Some of the biggest names in real estate charge a franchise fee on top of your split. It's a percentage of your GCI that goes to corporate — not to your business. Here's what that looks like.
A franchise fee is a percentage of your gross commission income (GCI) charged by the brokerage's parent company. It's separate from your commission split, separate from your desk fees, and separate from your transaction fees. It's an additional layer of cost — and it adds up fast.
At most franchise brokerages, this fee ranges from 3% to 8% of your GCI, often capped at $3,000–$6,000 per year.
| Brokerage | Franchise Fee | Cap |
|---|---|---|
| Keller Williams | 6% of GCI | Capped at $3,000/yr |
| Coldwell Banker | 6%–8% of GCI [VERIFY] | Varies by office [VERIFY] |
| RE/MAX | Varies by franchise [VERIFY] | Varies [VERIFY] |
| Century 21 | 6%–8% of GCI [VERIFY] | Varies by office [VERIFY] |
| LPT Realty | None | N/A |
| eXp Realty | None | N/A |
At $135,000 GCI (12 deals x $450K avg price x 2.5% commission), here's what the franchise fee alone costs you:
This is on top of your commission split, desk fees, and transaction fees.
LPT Realty is not a franchise. It operates as a single entity — no franchise model, no franchise fee. The company keeps costs low through a cloud-based structure with no physical offices to maintain, no franchise overhead to pass through.
This is one of the key structural advantages of the model: every dollar you earn goes further because there's no franchise tax on your production.
For an agent doing $135K GCI/yr (12 deals), here's the full picture: