The franchise vs independent decision
The real estate industry has two primary paths for starting a brokerage: buying into a franchise system or building an independent brokerage. In 2026, this decision is more nuanced than ever, with technology platforms like Brokurz offering a third option that combines independence with enterprise infrastructure.
According to industry data:
- Franchise brokerages: Represent approximately 60% of all brokerages but face increasing pressure from high fees and restrictions
- Independent brokerages: Growing faster than franchises, driven by technology democratization and agent demand for better economics
- Technology-enabled independents: The fastest-growing segment, combining independence with modern infrastructure
This guide will help you understand both models deeply, compare them across key dimensions, and make the right decision for your situation. We'll also explore how platforms like Brokurz can give you franchise-level technology with independent-level freedom.
Franchise model: The pros and cons
Franchise brokerages operate under a recognized brand name (e.g., RE/MAX, Coldwell Banker, Keller Williams) with established systems, training, and support.
Franchise advantages
- Brand recognition: Established brand name that consumers recognize and trust
- Proven systems: Tested business systems, processes, and procedures
- Training and support: Comprehensive training programs and ongoing support
- Marketing resources: National marketing campaigns and brand materials
- Technology platform: Franchise-provided technology (though quality varies)
- Network benefits: Access to franchise network, referrals, and best practices
- Faster start: Can launch faster with established systems
Franchise disadvantages
- High fees: Royalty fees (typically 5-8% of revenue), marketing fees (1-3%), and technology fees
- Limited control: Must follow franchise rules, restrictions, and brand guidelines
- Ongoing costs: Fees continue regardless of profitability
- Brand restrictions: Limited ability to customize brand, marketing, or operations
- Technology limitations: Must use franchise technology (may be outdated or expensive)
- Exit challenges: Difficult to sell or exit franchise agreement
- Market saturation: Multiple franchise locations in same market create competition