← Glossary
Agents and brokerages
Franchise fee
A cut of each commission paid to a national brand, often 5% to 8%. Agents at franchise brokerages usually pay it on top of their split.
Also called: royalty fee, brand fee
Related terms
Brokerage
The company agents work under. Commission checks go to the brokerage first, which pays the agent their share after its split and fees.
Commission split
How a commission is divided between the agent and the brokerage. With an 80/20 split, the agent keeps 80% and the brokerage gets 20%, often until a cap.
Desk fee
A monthly fee an agent pays the brokerage for a desk, tools or support. Some brokerages pair high desk fees with a 100% split.
Cap
The most an agent pays their brokerage in splits in a year. After you cap, you keep 100% of your commission, minus any per-deal fees.