What you need to know first
- Commission splits: Franchises typically offer 50-70% starting splits with caps ($18,000-$36,000 annually at Keller Williams, RE/MAX). Independent brokerages commonly offer 80-100% splits with lower or no caps.
- Fees: Franchise agents pay monthly desk fees ($200-$500), technology fees ($50-$150), franchise royalty fees (6% of gross commission at many brands), plus transaction fees. Independent brokerages typically charge flat transaction fees ($250-$500) or monthly admin fees ($50-$200).
- Brand value: Franchises provide national name recognition. Independent brokerages rely on local reputation and the agent's personal brand.
- Median income context: NAR's 2023 member profile shows the median REALTOR® gross income was $56,400. Your brokerage split directly impacts your take-home from that number.
Commission splits: the numbers that actually matter
Your split determines what you keep from every transaction. At a franchise like Keller Williams, a typical new agent starts at a 64/36 split until hitting an $18,000 annual cap, after which they move to 100% minus a monthly fee. At RE/MAX, agents commonly pay 5% of gross commission plus monthly fees. At Compass, splits vary by market but typically start 65-75% with lower caps in exchange for technology investment.
Independent brokerages structure this differently. Many offer 80-90% splits from day one, with flat transaction fees replacing percentage-based cuts. Some, including Foraker Realty Co., offer 100% commission plans where agents pay a fixed fee per transaction instead of surrendering a percentage.
The math: On a $300,000 home sale at 2.5% buyer agent commission ($7,500 gross), a 64% split leaves you $4,800. An 85% split leaves you $6,375. A 100% plan with a $400 transaction fee leaves you $7,100. Over 20 transactions annually, that's $96,000 vs $127,500 vs $142,000 before other fees.
Franchise caps matter if you close volume. At Keller Williams' $18,000 cap, you hit 100% splits after roughly $28,000 in gross commission (8-12 deals for most agents). But you still pay monthly fees, technology fees, and often per-transaction charges even post-cap.
Fees beyond the split
Franchises layer multiple fees:
- Monthly desk/office fees: $200-$500
- Technology platform fees: $50-$150 (kvCORE at KW, Lone Wolf at RE/MAX, proprietary CRM at Compass)
- Franchise royalty fees: typically 6% of gross commission goes to the parent company
- E&O insurance: $500-$1,200 annually
- Transaction coordinator fees: $200-$400 per deal at some brokerages
- Continuing education, parking, marketing materials
Total annual overhead at a mid-tier franchise agent: $8,000-$15,000 before any deals close.
Independent brokerages typically charge:
- Flat transaction fees: $250-$500 per closed side
- Monthly admin/technology fee: $50-$200
- E&O insurance: same $500-$1,200 range
- À la carte services: transaction coordination available but not mandatory
Total annual overhead at an independent brokerage: $3,000-$8,000 for a similar transaction volume.
The franchise argument: their fees fund national advertising, technology platforms, and training programs. The independent argument: you're paying for infrastructure you may not need, and you can buy better à la carte technology for less.
Support and training
Franchises excel at structured onboarding. Keller Williams offers BOLD training (12-week new agent program), Ignite mastermind groups, and a vast library of scripts, objection handlers, and recruiting materials. Compass provides a proprietary CRM, marketing design services, and data analytics tools. RE/MAX offers global networking and referral systems across 8,000+ offices.
This matters most in your first 1-2 years. If you're new to real estate, franchise training can accelerate your ramp. The structure forces accountability and provides templates for prospecting, listing presentations, and negotiation.
Independent brokerages vary wildly. Some are hands-off shops where experienced agents want minimal interference. Others, like Foraker Realty Co., offer direct mentorship from broker-owners with construction and transaction backgrounds—you can actually ask the owner to walk a property with you and interpret an inspection report, not just access a video library.
The tradeoff: Franchise training is systematized and scalable. Independent brokerage support is often personalized but depends on the broker's availability and expertise. At a franchise, you'll never wonder if training exists. At an independent shop, you need to ask what support looks like before you join.
Brand recognition vs personal brand
Franchises win on immediate name recognition. Sellers see Berkshire Hathaway or Coldwell Banker and perceive stability. Buyers recognize the Keller Williams red or the RE/MAX balloon. This matters in markets where you're competing against established agents—the brand does some credibility work for you.
Independent brokerages require you to build personal brand. In Chester County PA or New Castle County DE, a local independent brokerage with deep community ties can outperform a franchise. Sellers care more about your track record, neighborhood knowledge, and marketing plan than your yard sign logo. But you carry the burden of proving expertise yourself.
The shift: Agents increasingly realize clients hire the agent, not the brokerage. Zillow and Realtor.com searches prioritize agent profiles over brokerage brands. Your Google reviews, Instagram presence, and sphere of influence matter more than your broker's Super Bowl ad.
Franchise brand value peaks early in your career and in unfamiliar markets. If you're relocating to a new area, a recognized franchise helps. If you've been farming the same zip code for five years, the brand adds less value than you think.
Autonomy and business control
Franchises impose structure. Keller Williams expects agents to attend team meetings, participate in the profit-share recruitment system, and use company-mandated technology. Compass requires use of their proprietary platform. Many franchises restrict outside team affiliations or require approval for marketing materials.
Independent brokerages typically grant more freedom. You choose your own CRM, design your own marketing, set your own schedule. At Foraker Realty Co., agents aren't pressured into team models or profit-share recruiting—the focus is on closing deals and serving clients, not building downlines.
This matters if you have an established system. Experienced agents moving from a franchise often cite autonomy as the primary reason—they don't want to relearn a new CRM or attend mandatory Monday meetings. New agents might appreciate the structure and accountability franchises enforce.
Who thrives where
Franchises fit you if:
- You're new to real estate and need structured training
- You're relocating to a market where you lack connections
- You value name recognition in marketing materials
- You want access to national referral networks
- You're comfortable with corporate structure and mandatory meetings
Independent brokerages fit you if:
- You have an established client base or sphere of influence
- You want maximum commission retention and minimal fees
- You prefer direct access to the broker over corporate hierarchies
- You've developed your own systems and don't need proprietary platforms
- You value flexibility in how you run your business
Neither is universally superior. The right choice depends on your experience level, market position, and what you're willing to trade for support.
The Foraker Realty Co. model
Foraker Realty Co. operates as an independent brokerage serving Chester County PA, Delaware County PA, New Castle County DE, and Cecil County MD. Founded by Brian Foraker in 2021, the company was built specifically because experienced agents were leaving franchises for better splits and fewer gatekeepers.
Key differences from franchise models:
- No corporate cap takes—what you negotiate is what the company offers
- Agent-first commission structures without mandatory technology fees
- Direct access to a broker with construction background who can review inspection reports, advise on property conditions, and help agents guide clients through renovation decisions
- No pressure to recruit or build teams—focus stays on transactions and client service
- Local market specialists, not a national brand trying to serve every market identically
This model works for agents who've proven they can generate business and want to keep more of what they earn. It doesn't work for brand-new agents who need daily hand-holding or those who rely heavily on brokerage-provided leads.
Making the decision
Pull your last 12 months of production. Calculate:
- Total gross commission income (GCI)
- Current brokerage split percentage
- All fees paid (desk fees, transaction fees, franchise fees, technology fees)
- Net commission income after brokerage and fees
Now run the same numbers at a prospective independent brokerage's split structure. Factor in any support you'd lose and how you'd replace it (hire a transaction coordinator, buy your own CRM, pay for training). The gap between those two net income figures is what you're paying for brand and support.
For most agents producing $100,000+ in GCI, the math favors independent brokerages by $10,000-$25,000 annually. For agents under $50,000 GCI, franchise training and structure may justify the cost until you build momentum.
Ask specific questions before moving:
- What's the exact split and fee structure for my production level?
- What happens to my split if I have a down year?
- Can I see the broker's E&O insurance certificate and license history?
- How many active agents does the brokerage have, and what's the average production level?
- What direct support does the broker provide vs what's outsourced?
Avoid brokerages—franchise or independent—that can't answer these questions with specifics.
Frequently asked questions
Q: What percentage do most real estate agents keep after brokerage splits and fees?
A: At franchises, agents typically net 50-70% of gross commission after splits, caps, and fees. At independent brokerages, agents commonly net 75-95% depending on their split structure and transaction volume. For example, an agent grossing $100,000 at a 64% split franchise with $12,000 in annual fees nets roughly $52,000. The same agent at an independent brokerage with an 85% split and $4,000 in fees nets $81,000.
Q: Do independent brokerages provide leads like Keller Williams or Compass?
A: Most independent brokerages do not provide company-generated leads. Franchises like Keller Williams and Compass invest in lead generation programs (often at additional cost to agents). Independent brokerages typically expect agents to generate their own business through sphere of influence, past clients, and personal marketing. Some independent brokerages, including Foraker Realty Co., focus on supporting agents' own lead generation rather than competing for company-provided leads.
Q: How much do real estate agents actually make in Pennsylvania and Delaware?
A: NAR's 2023 data shows median REALTOR® income was $56,400 nationally. In Pennsylvania, the Bureau of Labor Statistics reports mean annual wage for real estate sales agents at $68,290. In Delaware, mean annual wage is $74,360. Top-producing agents (top 10%) earn $150,000+, while part-time or new agents often earn under $30,000 in their first year. Your brokerage split structure directly impacts which end of that range you reach—moving from a 60% to 90% split increases your take-home by 50% on the same production.
Thinking about a move? If you're producing $75,000+ in gross commission and want a straight answer about what you'd actually net at an independent brokerage, reach out to Foraker Realty Co. No recruitment pitch—just the math and what support actually looks like.
Foraker Realty Co. is an independent brokerage serving Chester County PA, Delaware County PA, New Castle County DE, and Cecil County MD.
<!-- foraker-byline -->Published by Foraker Realty Co. — independent brokerage serving Chester County, PA · New Castle County, DE · Cecil County, MD.
Market data sourced from BrightMLS via Foraker Realty Co. Figures reflect data available at time of publication.