A real estate franchise is a brand license sold to a licensed brokerage: four 2026 FDDs charge 6% of commission income (Keller Williams, Century 21), per-agent fees plus 1% (RE/MAX) or per-agent and per-closing fees (Realty ONE Group).
Key takeaways
- Keller Williams charges a 6% Production Royalty on Gross Commission Income but caps it at $3,000 per associate per year, a cap it may raise to $4,000 (Keller Williams FDD, Item 6 Note 1).
- Realty ONE Group charges no royalty: $60 per agent per month plus a Transaction Fee of $135 on the first $200,000 of price, only when a deal pays $2,000 or more in commission (Realty ONE Group FDD, Item 6).
- Every one of the four filings requires the office to run under a state-licensed broker; Texas asks for four years of active licensed experience in the prior 60 months before it issues that license (Texas Real Estate Commission).
- Since August 17, 2024, agents working with buyers sign a written agreement with an objectively ascertainable fee before any tour, under paragraph 58(vi) of the NAR Settlement Agreement.
- Keller Williams ($70 million), Anywhere ($83.5 million) and RE/MAX, LLC ($55.0 million) disclose commission-suit settlements in Item 3 of their 2026 FDDs; NAR’s own settlement is $418.00 million.
What does a brokerage buy when it signs a real estate franchise?
It buys the right to use a brand, its systems and its referral network while keeping its own state broker license and its own agents. The franchisor does not take over the commission check: the franchisee brokerage collects it, then pays Item 6 fees. In the Keller Williams FDD (May 6, 2026, as amended September 29, 2026), the franchise unit is called a Market Center; Century 21 calls it an Office; Realty ONE Group calls it an Outlet.
The four disclosure documents read for this page were filed in Minnesota between March 30 and September 30, 2026. One scope point matters before any fee comparison: the RE/MAX document is issued by RE/MAX Integrated Regions, LLC and covers only 9 states (Connecticut, Indiana, Maine, Massachusetts, Minnesota, New Hampshire, Rhode Island, Vermont and Wisconsin). RE/MAX, LLC sells offices elsewhere under a separate FDD (RE/MAX FDD, Item 1).
| Fact | Figure | Source |
|---|---|---|
| Keller Williams royalty and cap | 6% of GCI, capped at $3,000 per associate per year | KW FDD Item 6 Note 1 |
| Century 21 royalty and floor | 6% of Gross Revenue, $500 minimum per month | Century 21 FDD Item 6 |
| RE/MAX monthly fee (9 states) | $143 to $170 per Sales Associate plus 1% Broker Fee | RE/MAX FDD Item 6 |
| Realty ONE Group royalty | None; $60 per agent per month, $1,200 minimum | Realty ONE Group FDD Item 6 |
| Buyer agreement before touring | Required from August 17, 2024 | NAR practice change slides |
| NAR settlement amount | $418.00 million over about four years | Settlement Agreement para. 24 |
Is eXp Realty a franchise?
No franchise offering appears in its annual report. eXp World Holdings describes a “cloud-based brokerage model” in which the company earns commissions and “pays a portion of the commissions earned to its real estate agents and brokers,” with over 83,000 agents at December 31, 2025, most retained as independent contractors (eXp World Holdings Form 10-K for 2025). An agent joins eXp; a brokerage owner does not buy an eXp office.
Market-level counts, including how many U.S. brokerage offices carry a franchise brand and how 11 brokerage FDDs set initial fees, sit in our real estate franchise statistics report. This page does not repeat them.
Who has to hold the broker license?
Someone running the franchised office must hold a state broker license, and every one of the four FDDs says so. The owner can hold it personally or hire a licensed broker: Keller Williams lets the franchisee “secure the services of” one, RE/MAX requires the on-site supervisor to be the broker of record, and Century 21 names a “Responsible Broker” in the franchise agreement. The Keller Williams FDD (May 6, 2026, as amended September 29, 2026) budgets $1,500 to $5,000 for the broker license in Item 7.
| Brand | What the FDD requires | Where |
|---|---|---|
| Keller Williams | Operating Principal must be a licensed broker unless the franchisee has secured one; broker license budgeted at $1,500 to $5,000 | Item 7 Note 3; Item 15 |
| RE/MAX (9 states) | Person supervising day-to-day operation must hold a broker license to act as managing or designated broker of record | Item 15 |
| Century 21 | “Responsible Broker”: your licensed real estate broker as required under the laws of the state | Item 14 |
| Realty ONE Group | “In most states, you will need a real estate broker’s license”; some states require franchised brokers to say they are franchised | Item 1 |
How long does it take to qualify as a broker in Texas, Florida and California?
Between 24 and 48 months of licensed sales experience, inside a 60-month window, in the three states checked. Texas is the longest: four years of active experience, 720 experience points and 900 classroom hours (270 qualifying plus 630 related). Florida asks for 24 months under Florida Statutes section 475.17(2)(b)1 and a broker course of up to 72 hours. California asks for two years full time plus eight college courses.
| State | Experience before applying | Education | Source |
|---|---|---|---|
| Texas | At least 4 years active, within the prior 60 months; 720 points | 270 hours qualifying plus 630 hours related, incl. 6-hour Broker Responsibility Course; a bachelor’s degree covers up to 300 hours | Texas Real Estate Commission |
| Florida | Active sales associate license for at least 24 months in the preceding 5 years | Broker course up to 72 classroom hours; up to 60 hours post-licensing before first renewal | Fla. Stat. 475.17(2), (4) |
| California | 2 years full-time licensed salesperson experience within the last 5 years (or a 4-year degree with a real estate major or minor) | 8 college-level courses of 3 semester units, 5 of them named | California Department of Real Estate |
Texas requires 48 months of active licensed experience within 60 months; Florida and California require 24. Sources: TREC, Fla. Stat. 475.17, California DRE, accessed November 3, 2026.
How four 2026 filings meter the commission on each closing
Two filings take a percentage of what the brokerage collects, one charges per agent plus 1% of revenue, and one charges per agent plus a fee per closed deal. The base also differs: Keller Williams subtracts referral fees paid to other brokerages from Gross Commission Income, RE/MAX counts revenue “before any deductions” except referral fees paid inside its network, and Century 21 counts “all compensation received or receivable.”
| Fee term | Keller Williams | Century 21 | RE/MAX (9 states) | Realty ONE Group |
|---|---|---|---|---|
| Percentage fee | 6% of Gross Commission Income | 6% of Gross Revenue; 1.5% on property management | Broker Fee 1% of Revenue | None |
| Cap or floor | Cap $3,000 per associate per year (up to $4,000) | Minimum $500 per month; CIB rebate up to 2% of Gross Revenue | Ascend option: 5% capped at $3,000 per agent per year | Minimum Monthly Agent Fee $1,200 ($600 low density) |
| Per-agent fee | Associate Access Fee $72 per month | None in Item 6 table | CFF $143 to $170 per month; dues $410 per year; Marketing Fee $127 to $140 per month | $60 per agent per month |
| Per-closing fee | None | Royalty due at close of each transaction | $25 per side on Aspire or Ascend options | $135 for first $200,000 of price, $50 per additional $200,000 |
| Office-level fee | Core Market Center Fee $1,185 per month | Brand Marketing Fund 0.50% | Fees billed on the greater of actual agents or the minimum count | Marketing and Promotion 2% of agent and transaction fees |
| Source | KW FDD Item 6 | C21 FDD Item 6 | RE/MAX FDD Item 6 | ROG FDD Item 6 |
Keller Williams adds a fee no other filing in this set prints: a Profit Sharing Contribution equal to “a portion of your monthly profit, if any,” set by Attachment F of its franchise agreement (KW FDD, Item 6 Note 2). It also says the Core Market Center Fee and Associate Access Fee stay flat in 2026 and 2027, then rise to $1,250 and $75 in 2028. For how these royalty designs compare with franchising generally, see our franchise royalty rates study.
At what production level do the caps and minimums take over?
Each cap converts to a production threshold by dividing the cap by the rate. Keller Williams’ $3,000 cap at 6% is reached at $50,000 of Gross Commission Income per associate per year; above that, the associate’s royalty stops growing. Century 21’s $500 monthly minimum binds when office Gross Revenue falls under $8,333 in a month. These are our divisions of the FDD terms, not projections of what any office will close.
| FDD term | Arithmetic | Result | What it tells you |
|---|---|---|---|
| KW cap $3,000 at 6% (Item 6 Note 1) | $3,000 / 0.06 | $50,000 GCI per associate per year | Royalty is a flat $3,000 for any associate above this |
| KW cap ceiling $4,000 at 6% | $4,000 / 0.06 | $66,667 GCI per associate | Threshold if KW raises the cap to its stated limit |
| RE/MAX Ascend 5%, cap $3,000 (Item 6 fn. 3) | $3,000 / 0.05 | $60,000 Revenue per agent per year | Broker Fee stops growing above this |
| RE/MAX Aspire 5%, cap $5,000 | $5,000 / 0.05 | $100,000 Revenue in the 12-month period | Applies only to newly recruited agents |
| C21 6% less maximum CIB 2% (Item 6 note 5) | 6% minus 2% | 4% of Gross Revenue | Lowest net royalty rate if the full bonus is earned |
| C21 minimum $500 per month | $500 / 0.06 | $8,333 monthly Gross Revenue | Below this, the office pays the $500 floor; $6,000 per year |
| ROG Fixed Transaction Fee Program, $8,000 (Item 6 note 4) | $8,000 / $135 | 60th closing at the first price step | After $8,000 per agent in 12 months, fee drops to $50 |
Keller Williams’ 6% royalty stops growing at $50,000 of commission income per associate; RE/MAX’s Ascend 5% fee stops at $60,000. KW and RE/MAX FDDs, Item 6, 2026; FCB arithmetic.
Realty ONE Group’s per-closing fee rises in $200,000 steps of sale price, which the table below reads straight from section 4.5(a) of its franchise agreement. A sale that produces less than $2,000 of gross commission income owes no Transaction Fee at all (Realty ONE Group FDD, Item 6).
| Sale price of the property | Transaction Fee | Basis |
|---|---|---|
| Commission under $2,000 | $0 | Fee applies only at $2,000 GCI or more |
| Up to $200,000 | $135 | First $200,000 of price |
| $400,000 | $185 | $135 + one $50 step |
| $600,000 | $235 | $135 + two $50 steps |
| $1,000,000 | $335 | $135 + four $50 steps |
How many agents does a RE/MAX office have to carry?
A new RE/MAX office in a high-density market must reach 7 agents from its first anniversary, 15 in months 25 to 36 and 20 from month 37 (RE/MAX FDD, Item 12). The count matters for fees: the $143 to $170 monthly fee and the $127 to $140 Marketing Fee are billed on the greater of actual agents or that minimum, so a short office pays for empty seats.
| Office type | Year 1 anniversary to month 24 | Months 25 to 36 | Month 37 to end of term |
|---|---|---|---|
| New office, high-density market | 7 | 15 | 20 |
| New office, medium-density market | 5 | 8 | 12 |
| New office, low-density market | 2 | 3 | 5 |
| Commercial office | 2 | 3 | 4 |
| Conversion of an existing brokerage | Greater of 60% of prior agent count or the new-office minimum | Same | Same |
Only agents who have been outside the REMAX network for at least 3 months count toward the minimum, and the filing imposes no minimum on franchisees with 100 or more Sales Associates. A broker converting an independent office of 30 agents would carry a minimum of 18 under the 60% rule (30 x 0.60), unless the new-office minimum is higher; our conversion franchising study covers how other systems treat conversions.
What did the 2024 NAR settlement change about commissions?
It removed buyer-broker compensation offers from the MLS and made buyer agents sign a written agreement, with a fixed or formula fee, before a buyer tours any home. NAR announced the $418 million settlement on March 15, 2024; the changes took effect August 17, 2024 and the court granted final approval on November 26, 2024 (NAR practice change slides; NAR release).
| Paragraph | Practice change | What a franchised office has to do |
|---|---|---|
| 58(ii) | No offers of compensation to buyer brokers on the MLS | Communicate any offer off the MLS |
| 58(vi) | Written agreement before the buyer tours any home | Have buyer agreements signed before the first showing |
| 58(vi)(b) | Fee “objectively ascertainable and may not be open-ended” | State a rate or amount, not “whatever the seller offers” |
| 58(vi)(c) | No compensation above the agreed amount or rate | Cap buyer-side pay at the agreement figure |
| 58(viii) | Seller approves any payment to a buyer’s broker, in writing, in advance | Add the disclosure to listing paperwork |
| 58(ix) | Disclose that commissions “are not set by law and are fully negotiable” | Use conforming listing and buyer forms |
The release in NAR’s settlement covers brokerages with an NAR member as principal and 2022 residential transaction volume of $2 billion or below, according to the same NAR slides. For a franchisee, the practical link is the fee base: royalties in the Keller Williams and Century 21 filings are a share of commission income, so whatever a buyer agreement sets becomes part of what the franchisor’s 6% is charged on.
What do the franchisors disclose about the commission suits in Item 3?
All four filings list the antitrust class actions over buyer-broker commissions. Three franchisor groups report nationwide settlements with final approval on May 9, 2024, and each says appeals were still pending at issuance. Keller Williams adds a warning in its industry-regulation section that buyer class actions against it “have not been settled.” Our franchise litigation disclosure report explains how to read Item 3.
| Party | Settlement | Status stated in the filing | Source |
|---|---|---|---|
| National Association of REALTORS | $418.00 million, paid in installments | Final approval November 26, 2024 | Settlement para. 24, 37 |
| Anywhere (Century 21 parent) | $83.5 million, signed October 5, 2023 | Final approval May 9, 2024; appeal pending in the Eighth Circuit | C21 FDD Item 3 |
| Keller Williams | $70 million: $50 million paid April 30, 2024, then $10 million in 2026 and 2027 | Final approval May 9, 2024; objectors’ appeal pending; buyer suits not settled | KW FDD Item 3 |
| RE/MAX, LLC | $55.0 million, signed October 5, 2023 | Effective only if affirmed on appeal; argued January 14, 2026 | RE/MAX FDD Item 3 |
| Realty ONE Group | Amount not stated | Settled Gibson in April 2024; awaiting approval in 4 other cases | ROG FDD Item 3 |
The Sitzer jury verdict that preceded most of these settlements was $1,786,310,872 on October 31, 2023, which the Keller Williams filing notes could be trebled to $5,358,932,616 under antitrust law (KW FDD, Item 3). Ask the franchisor’s counsel whether the settlement release named in Item 3 covers your entity and your agents, and for which years.
Percentage, capped or flat fees: which design fits your office?
The answer turns on four numbers you already know: commission per agent per year, average sale price, agent headcount and who holds the broker license. Match them against the thresholds below, then confirm each term in Items 6, 12 and 15 of the current FDD. This is general information, not legal, financial or investment advice.
| If your office… | Then check… | Filing and item |
|---|---|---|
| has no licensed broker yet, and you are in Texas with under 4 years of active licensed time | Hiring a broker of record, which KW, RE/MAX and Century 21 allow | KW Item 15; RE/MAX Item 15; C21 Item 14 |
| has many agents producing over $50,000 of commission a year each | Whether the KW $3,000 cap holds; it may rise to $4,000 or be removed | KW Item 6 Note 1 |
| has months under $8,333 of total commission income | The Century 21 $500 monthly minimum royalty | C21 Item 6 |
| sells mostly homes under $200,000 at $2,000 or more commission | The $135 per-closing fee against a percentage royalty on the same deal | ROG Item 6 |
| sits in one of the 9 RE/MAX Integrated Regions states with under 7 agents by month 24 | Fees billed on the minimum count, not your actual agents | RE/MAX Items 6 and 12 |
| earns a large share from property management | Century 21’s separate 1.5% Property Management Fee | C21 Item 6 |
| is an independent brokerage converting | RE/MAX minimum of 60% of your prior agent count | RE/MAX Item 12 |
For the clause-by-clause reading of term, renewal and transfer, see our franchise agreement guide. Any earnings or financial performance data a brokerage franchisor chooses to give appears only in Item 19 of its FDD; our Item 19 research explains what that item can and cannot show. A consultant can also line up the four filings side by side; our page on what a franchise consultant does describes that role and how it is paid.
How we compiled this
In November 2026 we read 4 brokerage franchise disclosure documents filed in Minnesota (Keller Williams, RE/MAX Integrated Regions, Century 21 and Realty ONE Group) for Items 1, 3, 6, 7, 12, 14 and 15, plus the 116-page NAR Settlement Agreement, NAR’s practice change slides, one Florida statute, two state licensing agency pages and eXp World Holdings’ 2025 Form 10-K. Threshold arithmetic is ours and labelled. We excluded every Item 19 figure. California’s legislature site refused our request, so we used the Department of Real Estate page. The franchise disclosure document guide explains the 23 items.
Frequently asked questions
Do you need a broker license to own a real estate franchise?
Not always personally, but the office must operate under one. Keller Williams lets the Operating Principal be a licensed broker or lets the franchisee secure one (KW FDD Item 15), and RE/MAX requires the on-site supervisor to be the designated broker of record (Item 15). In Texas, that broker needs four years of active licensed experience within the prior 60 months.
How much does it cost to buy a real estate franchise?
The upfront fee and the Item 7 estimate are only part of it; ongoing fees depend on agent count and commission. The Keller Williams 2026 FDD alone budgets $1,500 to $5,000 for the broker license and charges $1,185 a month as a Core Market Center Fee. Initial fee and Item 7 ranges for 11 brands are in our real estate franchise statistics report.
What is the cheapest real estate franchise?
No single filing is cheapest for every office, because the fee designs bite at different production levels. A capped 6% royalty stops at $3,000 per Keller Williams associate once that agent passes $50,000 of commission income, while Realty ONE Group charges $60 per agent monthly plus $135 per closing up to $200,000 of price. Run your own headcount and price mix through Item 6.
Is eXp Realty a franchise?
Its 2025 Form 10-K describes eXp World Holdings as a cloud-based brokerage that earns commissions and pays a portion to its agents, with over 83,000 agents at December 31, 2025. It does not describe a franchise offering: agents affiliate with eXp Realty as the brokerage, rather than a brokerage owner buying a branded office under an FDD.
Did the NAR settlement change real estate franchise fees?
The four 2026 FDDs reviewed still print the same fee formulas: 6% at Keller Williams and Century 21, per-agent fees at RE/MAX and Realty ONE Group. What changed on August 17, 2024 is the commission those formulas apply to: buyer agents now need a signed agreement with an objectively ascertainable fee before touring, under paragraph 58(vi) of the settlement.
Where can I find earnings data for a real estate franchise?
Only in Item 19 of the brand’s current franchise disclosure document, if the franchisor chooses to include it. We do not publish those figures. Ask for the FDD issued in 2026, read Item 19 alongside Item 6 fees and Item 7 costs, and ask the franchisor which offices and years the Item 19 data covers before relying on it.
Can an independent brokerage convert to a real estate franchise?
Yes; all four filings reviewed accept existing brokerages. RE/MAX sets a converting office’s minimum agent count at the greater of 60% of its prior roster or the new-office minimum (Item 12), and Century 21 prints a separate Item 7 table for a conversion office. Our conversion franchising study compares conversion terms across systems.
Sources
- Keller Williams Realty, LLC Market Center Franchise Disclosure Document, issued May 6, 2026, as amended September 29, 2026, Minnesota Department of Commerce CARDS, document 37349-202609-03. Accessed 2026-11-03.
- RE/MAX Integrated Regions, LLC Franchise Disclosure Document, issued April 2, 2026, as amended September 3, 2026, Minnesota CARDS, document 37230-202609-03. Accessed 2026-11-03.
- Century 21 Real Estate LLC Franchise Disclosure Document, issued March 30, 2026, Minnesota CARDS, document 35701-202603-09. Accessed 2026-11-03.
- Realty ONE Group Affiliates, Inc. Franchise Disclosure Document, issued March 26, 2026, Minnesota CARDS, document 36071-202604-12. Accessed 2026-11-03.
- Settlement Agreement, Burnett v. National Association of Realtors, No. 19-cv-00332-SRB (W.D. Mo.), Doc. 1458-1, filed April 19, 2024, National Association of REALTORS. Accessed 2026-11-03.
- August 15, 2024 Practice Change Webinar Slides, National Association of REALTORS. Accessed 2026-11-03.
- U.S. District Court for the Western District of Missouri grants final approval of NAR settlement, November 26, 2024, National Association of REALTORS. Accessed 2026-11-03.
- Florida Statutes section 475.17, Qualifications for practice, Florida Legislature. Accessed 2026-11-03.
- Become an Individual Real Estate Broker, Texas Real Estate Commission. Accessed 2026-11-03.
- Broker Examination and License Requirements, California Department of Real Estate. Accessed 2026-11-03.
- eXp World Holdings, Inc. Form 10-K for fiscal year 2025, filed February 24, 2026, U.S. Securities and Exchange Commission, EDGAR. Accessed 2026-11-03.