At a Glance
Products & Services: Real estate commission factoring
Number of Locations: 50
Total Investment: $172.3K - $301.5K
Began Franchising: 1996
About Commission ExpressJohn L. Stedman and Joseph M. Giovannelli founded Commission Express, based in Fairfax, Virginia, in 1992.
With most real estate transactions, an agent waits between 30 and 90 days to receive his or her commission. In the meantime, the agent still has to cover the costs of running an office and paying employees. Commission Express franchisees essentially offer agents cash advances by purchasing an agent's outstanding commissions at a discount. When the home purchase is completed and the commission is received, Commission Express withholds between 8 and 14 percent in fees. Franchisees provide their own capital to purchase the commissions.
Startup Costs, Ongoing Fees and Financing
Franchise Fee: $10,000 - $50,000
Ongoing Royalty Fee: 9%
Term of Franchise Agreement: 10 years, renewable
Financial RequirementsNet Worth: $112,000 - $192,000
Liquid Cash Available: $100,000
OperationsFranchise can be run from home. 10% of all franchisees own more than one unit. Number of employees needed to run franchised unit: 2. Absentee ownership of franchise is allowed. (95% of current franchisees are owner/operators).
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