Commission Express vs Sotheby's International Realty Franchise Comparison

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.

The total investment necessary to begin operation of a Commission Express franchised business with a protected development territory ranges from $172,300 to $301,500. This includes $10,000 (for a small territory), $25,000 (for a medium territory) or $50,000 (for a large territory) that must be paid to the franchisor.
The total investment necessary to begin operation of a Commission Express franchised business with an open market development territory ranges from $112,800 to $192,500. This includes $25,000 that must be paid to the franchisor.

Dedicated to renewing the luxury real estate industry, Sotheby's International Realty offers born-again experiences through a global network of atypical agents.

The total investment necessary to begin operation of a Sotheby's International Realty franchise is approximately $40,650 to $285,500 for a conversion real estate office, and $122,150 to $472,800 for a start-up real estate office. This includes $$0 to $25,000 that must be paid to the franchisor or an affiliate as an initial franchise fee. The initial franchise fee for a residential franchise is $25,000 for the first Branch Office, $12,500 for the second Branch Office and $7,500 for each additional Branch Office.