I am not looking at getting into a franchise currently, just researching some information for a finance brokerage I currently work for. They don't write mortgages now.
The aggregation company they would use has a flat fee per broker offering and not a percentage of monthly commission. Makes things a lot easier to budget.
I was interested in the various franchisor spilts with their franchisees.
20% upfront and 20% trail are reasonably standard for the non-franchise aggregators. Better agreements are available with some aggregators for some brokers if they have good volumes.
I think the figures quoted previously for Refund are reasonably accurate. My understanding is that many of the others are 30% or more but that's based on hearsay.
Personally I work on a flat fee basis. It's a substantially better deal than a commission split.
So when a franchisor uses an aggregator, the aggregator retains a portion prior to paying franchisor, then franchisor has split with franchisee, unless the aggregator has a flat fee structure?
Thanks for clearing that up. It makes sense. I was under the impression most franchises also used aggregators. I knew Mortgage Choice didn't, but was unsure on the other franchisors models.