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“I love serving agents,” says Todd Sumney, chief industry officer for HomeSmart, a Phoenix–based residential real estate franchise company with offices in 48 states. “When I travel and hear agents say, ‘I wish I joined sooner,’ it’s the best feeling.”
HomeSmart, a pioneer of the flat-fee model in franchising, just celebrated its 25th anniversary. Sumney joined HomeSmart in 2014 as chief marketing officer after years of representing big names like the Mayo Clinic and Ritz-Carlton Hotels. He says many predicted that the concept of charging franchisees’ agents a fixed fee, rather than a royalty payment based on gross commission income, wouldn’t last. But the model has flourished, showing how a creative business strategy can set a franchise apart. HomeSmart now has 25,000 agents operating in 263 offices.
The company’s success is also a reflection of the continued strength of franchising in residential real estate. At a time when national brokerages, such as eXp, Compass, and Real Brokerage, are gaining headlines and topping charts, franchising remains a popular option—and one with room for growth. Data from the National Association of REALTORS® shows that the number of members affiliated with franchise companies has held steady. Back in 2012, 38% of NAR’s members were affiliated with a franchise company. Although there have been small fluctuations over the years, in 2025, the number is once again 38%.
This article provides a jumping off point to explore affiliation options. Use it to think about what’s most important to your success—and then take a deep dive into what these and other companies have to offer.
The Appeal of Real Estate Franchising
In a rapidly changing real estate environment, what draws real estate professionals to consider a franchise purchase today?
“In a word, it’s ownership,” says Keith Robinson, co-CEO of NextHome. The Northern California company was founded in 2014 and began offering franchises the following year. Today, there are more than 600 NextHome offices around the country. “Many people still want to curate and create their own experience as a business owner. They’re the light that shines in the local market. We just have a big orange bulb that we plug in for them, so that they can do that more effectively,” Robinson says, referring to the company’s signature orange color.
Along with ownership comes the promise of building a tangible asset with value. “With our franchise, you have a protected territory,” Sumney says. “And some might say that [down the road], it would be easier to sell a franchised brokerage than it would be to sell a team.”
And while every version of Robinson’s “big orange bulb” has similarities, each company has a distinct emphasis with selling points such as:
- Consumer recognition and trust
- Marketing and tech services and support for brokers and agents
- Low relative cost to brokers and agents
- Events and learning opportunities
- Savings for consumers
- Integrated and sometimes proprietary technology solutions
- Regional strength
- Global reach
Staying Flexible as the Market Evolves
The companies participating in the 2025 Residential Franchise Report have adapted to the slow sales and industry challenges of recent years and remain intensely competitive. If anything, the challenges have been a catalyst for innovation and the growth of new models.
We spoke with executives at many of the companies to learn more about what they see as their unique strengths in facing the market’s headwinds and why they’re a top choice.
Before you decide to purchase or affiliate with a franchise brand, it’s important to evaluate not only the brand’s reputation and financial results, but also the initial and ongoing costs and the support systems it offers to prepare you for lasting success.
- What is the company’s model for franchisees?
- What does the brand say to consumers?
- How is the quality of the company’s technology services and support?
- In what other ways does the company support brokers and agents?
- Is the culture of the organization a good fit for me and my company?
What is the Company’s Model for Franchisees?
“There are three lanes in this industry,” says Sumney, “the traditional broker split, revenue share, and the flat-fee transaction model, [which] I believe is the future of the industry.”
Under the traditional split, franchisees pay a royalty fee—a percentage of gross commission income—as part of their franchise agreement. Under the flat-fee models, franchisees typically pay a transaction fee as well as a monthly subscription fee.
Revenue-sharing or profit-sharing models add a twist: the ability for an agent to sponsor new recruits and earn passive income from their sales. Keller Williams Realty International’s profit-sharing model offers a share of the brokerage’s profits to sponsors and their sponsors, and their sponsors and so on, up to seven levels. Under EXIT Realty’s revenue-sharing model, when a recruited agent closes a sale, the sponsor receives a bonus payment. “Because it’s single-level residuals, it can be a substantial sum of money,” says Tami Bonnell, co-chair of the company, which has headquarters in both Ontario, Canada, and Massachusetts. Smaller bonus payments continue when EXIT agents retire—and agents can designate a beneficiary to receive a payment after their death. (Agents also pay a graduated transaction fee to EXIT that covers company expenses, including marketing and advertising support, charitable endeavors, and bonuses for administrative staff.)
“Many people still want to curate and create their own experience as a business owner. They’re the light that shines in the local market. We just have a big orange bulb that we plug in for them, so that they can do that more effectively.” —Keith Robinson, co-CEO of NextHome
Newer flat-fee models like HomeSmart and the Dallas-based United Real Estate aim to put more money in agents’ pockets. United agents receive 100% of the gross commission income and pay a small transaction fee on the sale, says Rick Haase, president of the 13-year-old United Real Estate and COO of the parent company United Real Estate Group. The company’s mission, he says, is to “improve the financial trajectory of our brokers and agents’ careers and lives.” In addition to the agent fee structure, the company has a 10-category value proposition, each with a variety of services, tools and supports. “We’re surpassing 90,000 sales closings and growing rapidly,” Haase says. “This is a lucrative financial model and efficient method of running a brokerage at our scale. We are being rewarded with growth as we extend these services to other brokerages around the country.” (The 100-year-old United Country Real Estate, focused on the sale of rural properties, is also part of United Real Estate Group.)
Weichert President Bill Scavone says his company fills a key niche for brokers. “We call it a business-format franchise. In our 56th year, we’re still operating company offices, so we know what’s happening in the street—what it’s like to recruit, the variety of different services you need to offer, making sure people are doing the activities they need to do to be successful, and having the discipline to do those things. That’s really our difference, [knowing] the structure of running a business and how to do it profitably.”
What Does the Brand Say to Consumers?
For buyers and sellers seeking a familiar name and reputation, it’s hard to argue with the ubiquity of the RE/MAX hot air balloon. Chris Lim, chief growth officer for RE/MAX, points to research showing that the company enjoys 36% unaided brand awareness.
A consumer survey by Brand-Spark calls RE/MAX the most trusted real estate brand in the U.S. and Canada, Lim says. “It’s clear that people don’t just recognize RE/MAX, they trust it.”
RE/MAX began franchising in 1973 and remains one of the largest franchise brands in the country with nearly 50,000 agents. Among those participating in this year’s report, it has the largest worldwide reach with more than 5,500 non-U.S. offices.
Under EXIT Realty’s revenue-sharing model, when a recruited agent closes a sale, the sponsor receives a bonus payment. Smaller bonus payments continue when EXIT agents retire. “Because it’s single-level residuals, it can be a substantial sum of money.” —Tami Bonnell, co-chair of EXIT Realty
Name recognition is also a strength for Berkshire Hathaway HomeServices. When HomeServices of America was purchased by Berkshire Hathaway in 1998, the company gained the burnish of Berkshire Hathaway’s revered Chairman and CEO Warren Buffett. The company began selling franchises in 2013 and soon grew into a national powerhouse. Today, Berkshire Hathaway HomeServices has nearly 45,000 network agents and brokers. Earlier this year, veteran Berkshire Hathaway HomeServices Ambassador Real Estate broker Vince Leisey was named as president of the network.
Not every buyer or seller is motivated by the same thing. Some want prestige, others value speed and convenience.
“Most are focused on cost savings. That’s where Assist2Sell has built its model,” says Chief Operating Officer Ryan Elliott. “Since 1994, our franchise model has centered on giving consumers full-service real estate with the simplicity and certainty of a flat fee. We empower brokers and agents to provide a complete suite of services, without pushing clients into the one-size-fits-all commission model. Our mission is simple: Great service, save people money, and give sellers more options when it comes to selling their home.”
“It’s all about the customer,” Scavone says. “Everything from the way we do open houses, do listing presentations, represent sellers, and represent buyers is always transparent.” When residential practice changes went into effect in August 2024, he says, “We looked at what needed to be done and thought, we’re way ahead of schedule here!”
While every residential franchise company aims to create great consumer experiences, building a truly consumer-centric approach is at the core of NextHome, says co-CEO James Dwiggins. That starts with the naming of the company—“NextHome is a phrase that’s heard in nearly every conversation real estate practitioners have with consumers,” he says. “When talking to potential franchisees, we want to know, is the consumer their North Star? Or is it their career and ego? That’s the defining thing for us.” The company uses storytelling to illuminate its customer relationships and its trademarked “Humans Over Houses” mantra.
How is the Quality of the Company’s Technology Services and Support?
Real estate franchise companies are constantly evaluating and evolving their tech stack, the combination of technologies they use and offer for broker and agent support.
Technology is so important that a decade ago, KWRI announced it was pivoting from being a real estate company to being a technology company dedicated to providing tools to support its real estate agents and their customers. A national leader in sheer size with over 144,000 agents (as of July)—KWRI offers proprietary tools including an app for consumers.
“Our current focus is making sure brokers and agents are equipped for the instant-everything world of AI. We have a saying: If it isn’t instant, it’s not fast enough.” —J. Lennox Scott, chairman and CEO of John L. Scott Real Estate
HomeSmart also has developed its own technology solutions. “We want to take away fees that agents are paying to someone else so that they can put [that money] toward their marketing,” Sumney says. “A perfect example is, we wrote our own e-signature software. It’s a daily part of the real estate business, and it ought to be included in the technology stack that agents have. It took many, many years to fine-tune it, but we launched it this year, and everyone’s using it.”
RE/MAX offers agents not only a range of productivity tools but also access to the “100 Days to Greatness” course from Buffini & Co. and a new AI-enhanced global referral platform. A broker suite includes everything needed to run an office, as well as a “powerful tool that supports both agent retention and recruitment by identifying top talent and uncovering coaching opportunities within existing agents,” Lim says.
NextHome makes sure agents have the support they need to fully leverage the company’s technology, with a U.S.–based support team available six days a week during East Coast and West Coast business hours, Dwiggins says. “It’s a big reason why our tools are so highly adopted. Also, our entire tech stack is single sign-on and API-integrated. Having one username and password gives brokers and agents access to everything. Profiles are set up automatically, MLS data flows seamlessly between programs, and the system handles the behind-the-scenes work so agents can focus on their clients. When questions come up, there’s always a real person ready to help. You can automate a lot these days, but not that. That human support has been a major factor in the success of our members.”
J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, was 25 when he became CEO of the company. From Day 1, he has focused on getting ahead of technological change. His current focus is “making sure brokers and agents are equipped for the instant-everything world of AI. We have a saying,” he quips. “If it isn’t instant, it’s not fast enough.”
In What Other Ways Does the Company Support Brokers and Agents?
Every franchise looks for ways to give their agents and brokers an edge. Realty Executives President Patrick van den Bossche says the company offers franchisees freedom to set their own pricing, commission structure, and business decisions with guardrails to protect the brand. Support services, such as optional P&L reviews, engender loyalty. The average franchisee tenure at Realty Executives is 17 years, and “some have been with us for over 40 years,” says Vice President Alysia Heun. Since 2019, the brand has been part of Outlier, a Phoenix–based capital firm with companies in healthcare, entertainment, manufacturing, and more.
With its mission to improve agents’ and brokers’ financial trajectory, United Real Estate offers access to a financial literacy platform that helps franchisees and their agents set goals and track progress, a group healthcare coverage plan, and private banking and professional net worth management. Also through its Bullseye proprietary platform, United gives agents access to a lead-generation program without referral fees.
Ongoing education is one of the biggest perks for franchisees of every brand. It takes such forms as virtual daily learning opportunities, quarterly in-office visits, mentoring, and large broker and agent events.
Another edge might be found in the way the company responds to change. “We’ve found that in times of, I’ll call it ‘chaos,’ that’s when communication is king—and queen and prince and princess,” says NextHome’s Robinson. “The ability to see what’s coming and communicate with our people where they want to receive the information has been a massive undertaking and something that has created real value. When people know you’re in the foxhole with them, it gives them a little bit of courage to face the next day.”
Is the Culture a Good Fit for Me and My Company?
Culture encompasses a range of factors from how a company operates and innovates to how it treats its people and customers. Research organization Gallup boils it down to six words: “how we do things around here.”
Gallup points out, “Company culture and its components are inherently neither good nor bad. Each organization has its own history and goals for the future, and its culture should be true to both.”
When you’re evaluating real estate franchise opportunities, look at all the questions explored above—but also understand the company’s “why” and how it aligns with your own.
Keller Williams, for example, is built around entrepreneurship. Anyone who’s ever been affiliated with KWRI knows the meaning of WI4C2TES, which spells out a belief system that starts with the importance of creating win-win scenarios and ends with success.
At the heart of Windermere’s business is “integrity, professionalism, and a commitment to building thriving communities,” says COO Brooks Burton. “We [also] believe that everyone deserves a home, and we are committed to doing our part to drive change and make access to home ownership equitable. Our franchisees and agents reflect these core values and help us achieve our goals—to be far more than a company that helps people buy and sell homes.”
Bonnell likens the people of EXIT to a great sports team. “We work really well together. We’re a privately held company. That makes it so that we can be very nimble and creative and we can literally ‘street-level move’ very quickly to the benefit of our people.” The company shows its caring through its revenue-sharing program and the “Spirit of EXIT” initiative, which supports agents’ community service passions.
NextHome’s Humans Over Houses approach “has fostered an unparalleled collaborative culture among the organization’s 6,000-plus members,” Dwiggins says.
The company has ambitious plans to double its size in the next 48 months. “We have spent a decade building a great end-to-end solution for the small- to medium-sized broker,” Robinson says, “and there isn’t any reason our offering doesn’t work for a large broker. Now it’s time for us to move ‘up market’ to the larger operators and enter that space.”
“The company offers franchisees freedom to set their own pricing, commission structure, and business decisions with guardrails to protect the brand.” —Patrick van den Bossche, president of Realty Executives
Dwiggins and Robinson have created a unique perch in the industry: Through their popular “Real Estate Insiders Unfiltered” podcast, they invite company owners, collaborators and industry thought leaders to tell stories, trade book recommendations and talk about ways to move the industry forward.
Scott was a podcast guest earlier this year and talked about the culture of John L. Scott. About eight years ago, he said, the team coined (and trademarked) a statement of higher purpose: Living Life as a Contribution. “It’s about being a contribution to our buyers, our sellers, supporting our teammates, kids at children’s hospitals [through the John L. Scott Foundation]—and then we take these life lessons home to community, family and places of faith. That’s the joy of being in the company.”
As the real estate industry continues to adapt to changing market dynamics, the insights gleaned from the 2025 Residential Franchise Report are invaluable for prospective franchisees and real estate professionals. By understanding the diverse models, support systems, and cultural frameworks offered by leading residential franchise companies, you can make informed decisions that align with your business goals and personal values.
