Commission Express

At a Glance

Products & Services: Real estate commission factoring

Number of Locations: 50

Total Investment: $172.3K - $301.5K

Founded: 1992

Began Franchising: 1996

About Commission Express

John 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.

Franchise Units

Year U.S. Canadian International Company Owned
2015 49 0 0 1
2014 44 0 0 1
2013 38 0 0 1
2012 30 0 0 1
2011 34 0 0 1
Where Seeking Franchisees: Franchisor is seeking new franchise units throughout the U.S.

Startup Costs, Ongoing Fees and Financing

Total Investment: $172,300 - $301,500
Franchise Fee: $10,000 - $50,000
Ongoing Royalty Fee: 9%
Term of Franchise Agreement: 10 years, renewable
Financial Requirements
Net Worth: $112,000 - $192,000
Liquid Cash Available: $100,000
Franchise 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).

How This Franchise Supports Franchisees

Training: Available at headquarters: 1 week. Annual conference : 4 days.
Ongoing Support: Meetings, Toll-free phone line, Internet, Security/safety procedures
Marketing Support: Ad slicks, National media,
Other marketing support: Website