The Fall of the Franchise Brokerage

The Fall of the Franchise Real Estate Brokerage

Executive Summary

Franchise brokerages are fading fast. The Compass–Anywhere merger is just the latest sign that big-box real estate brands are scrambling to stay relevant. Agents aren’t buying the hype anymore, they’re buying into themselves.

Consumers don’t care about your brokerage logo. They care about you. And agents are waking up to the fact that personal branding, autonomy, and support matter more than being one of 500+ agents in a KW “market center” office.

Independent brokerages, 100% commission models, flat-fee structures, non-Realtor real estate brokerages, and boutique firms like Mangrove Realty are thriving. Why? Because they’re built for agents, not shareholders.

Key Takeaways

  • The Compass–Anywhere merger is a desperate move to stay afloat, not a win for agents.
  • RE/MAX is bleeding agents in the U.S., proving the franchise model is cracking.
  • The NAR settlement changed the game. Agents now need signed buyer agreements and can’t rely on seller-paid commissions.
  • Consumers choose agents, not brands. Personal branding is the new brokerage.
  • Boutique brokerages like Mangrove Realty offer real support, coaching, and culture. Franchises can’t compete.
  • MNKY.agency recruits for all brokerage models, and only earns when you do.

Why Agents Are Ditching Big Franchise Real Estate Brands for Better Models

The Franchise Model Is Crumbling

Compass Buys Anywhere — But Who Wins?

Compass is buying Anywhere Real Estate in a $1.6B all-stock deal. That’s Coldwell Banker, Sotheby’s, Century 21, Better Homes & Gardens all under one roof.

Sounds impressive, right? Not so fast.

Agents are already raising red flags. Culture clashes, integration headaches, and cost-cutting are coming. And when the dust settles, agents will be the ones left holding the bag.

RE/MAX Is Shrinking

RE/MAX’s U.S. agent count is down. Revenue is slipping. The franchise model, built on splits, fees, and brand loyalty is losing steam.

Agents are asking: “Why am I paying 30% of my commission for a name that doesn’t help me close deals?”

Spoiler alert: they’re not anymore.

The NAR Settlement Changed Everything

The NAR commission lawsuit flipped the script. Buyer-agent commissions are no longer baked into the deal. Agents now need signed buyer-broker agreements and they’re negotiating their own pay.

This means agents need to sell themselves harder than ever. And that’s tough to do when your brokerage owns your brand, your content, and your marketing.

No wonder NAR membership is dropping. Agents want freedom not dues, mandates, and lawsuits.

Consumers Don’t Care About Your Brokerage

Here’s the truth: buyers and sellers choose agents, not brokerages.

They care about your reviews, your social media, your local expertise, and your vibe. They want someone they trust. Not someone who works for a big brand.

That’s why personal branding is everything. And it’s why agents are leaving franchises in droves.

Where Agents Are Going Instead

Let’s break it down.

Model TypeWhat It OffersWho It’s ForWhy It Wins
Franchise BrokerageBig brand, training, tech (sometimes)New agents, brand loyalistsLosing relevance, high fees, diluted support
100% CommissionKeep all commission, pay per transactionExperienced agentsPredictable costs, full autonomy
Flat-Fee BrokerageLow fixed fees, no splitsCost-conscious agentsSimple, scalable, transparent
Non-NAR BrokerageNo dues, no mandatesAgents avoiding NARFreedom, compliance flexibility
Boutique BrokerageCoaching, culture, team supportAgents who want mentorshipReal relationships, real results

Boutique Brokerages Are Crushing It

Take Mangrove Realty in Delray Beach. They’re not trying to be the biggest they’re focused on being the best.

Agents get hands-on coaching, daily accountability, and a team environment that actually feels like a team. No market center chaos. No waiting weeks for marketing approval. No wondering if your broker knows your name.

This is the future. And it’s already here.

Non-NAR Brokerages: Freedom Without the Fees

Let’s talk about the real pioneers here: Easy Realty, Florida’s Thompson Broker ℠

Easy Realty isn’t just another non-NAR brokerage. They’re the original disruptors. Established long before the NAR lawsuits made headlines, Easy Realty positioned itself as Florida’s Thompson Broker, offering agents a smarter way to do business.

No NAR dues. No state or local association fees. No lockbox drama. Agents still get access to the MLS and forms, with E&O included at no markup. And they do it all for just $495 per transaction side, capped annually at $4,950.

This model isn’t just lean, it’s liberating. Agents keep more of their money, avoid unnecessary politics, and operate with full compliance. It’s no wonder Easy Realty is ranking for keywords like non-Realtor brokerages, Thompson Broker Florida, and no-fee real estate model.

If you’re tired of paying dues to organizations that don’t deliver value, Easy Realty proves there’s a better way.

Personal Branding Is the New Brokerage

Want to win in 2025 and beyond? Build a brand that’s all about you.

Your name. Your niche. Your voice.

At MNKY Agency, we help agents build hyperlocal websites, dominate voice search, and create content libraries that rank for long-tail keywords. It’s called AIVSO: AI, Voice, and Search Optimization. It’s how agents become local celebrities.

Agent Economics That Actually Make Sense

Let’s compare the numbers.

Cost CategoryFranchise100% CommissionFlat-FeeBoutique
Split70/30 or worse100%100%85/15 or 90/10
Monthly Fees$200–$500$0$295–$495Varies
Transaction Fee$0–$500$495–$600$495–$595$0–$300
E&O InsuranceOften marked upIncluded or $50/moIncludedIncluded
Marketing SupportGenericDIYDIYPersonalized
CoachingGroup webinarsNoneNone1-on-1 & team-based
CultureCrowded market centersSoloSoloTight-knit teams

FAQs

Is the Compass–Anywhere merger good for agents?
Not really. It’s good for shareholders, not agents. Expect more bureaucracy, less support, and a lot of churn.

What’s the difference between 100% commission and flat-fee brokerages?
100% commission means you keep all your commission and pay a per-transaction fee. Flat-fee brokerages charge a fixed monthly or per-deal fee. Both models offer better economics than franchises.

Can I succeed without being a Realtor®?
Absolutely. Non-NAR brokerages offer MLS access, lockboxes, and compliance, without the dues or drama.

Why is personal branding so important now?
Because consumers don’t care about your brokerage. They care about you. Your brand is your business. Own it.

What should I look for in a brokerage?
Support, autonomy, economics, culture, and tech. If your brokerage isn’t helping you grow, it’s time to move on.

How does MNKY Agency help brokers recruit agents?
We recruit on a commission-only, pay-per-transaction model. No monthly fees. No retainers. We only earn when you do.

Final Word

Franchise brokerages aren’t dead, but they’re being outperformed. Agents want freedom, support, and better margins. They want to build their own brands, not someone else’s.

Independent, 100% commission, flat-fee, non-NAR, and boutique brokerages are the future. They’re leaner, smarter, and built for the agent, not the logo.

If you’re a broker ready to build something agents actually want to join, MNKY Agency can help.

Book a free recruitment consultation today!Let’s Get Growing.

About the author

I am J. Stuart Hill, founder of MNKY Agency. For two decades I have helped brokerages recruit and retain the right agents, not just more agents, and I have helped agents build businesses that compound. I coined AIVSO, which stands for AI, Voice, and Search Optimization, and I built InstantEngage, an always‑on system that converts buyers, sellers, and recruits in minutes without losing the human touch.
I love this industry, and I believe we are entering its most creative era yet.

About MNKY Agency

MNKY Agency recruits for all brokerage models. We build employing broker brands that agents want to join, and we do it on a commission‑only basis, just $100 per closed transaction by any agent we have recruited for your brokerage. Our pay‑per‑closed‑transaction model means we only earn when you earn. We also deliver hyperlocal websites, landing pages that convert, email programs that nurture, and AIVSO so you rank in an answer‑engine world. If you are ready to build a recruiting flywheel that compounds, explore our approach to recruiting and our AIVSO framework. Let’s get growing!

 

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