Real estate franchises in Australia: licensing, commission splits and franchise fees

• FranchiseScope's analysis of 52 real estate franchisors' Register profiles (captured 19 August 2026) found median setup estimates of $72,900 to $350,000.
• Only 3 of 45 profiles (6.7%) say franchisees have any rights to goodwill they generate, so check who owns your rent roll, listings and database if you leave.
• In NSW, only a class 1 agent nominated as licensee in charge can authorise withdrawals from an agency's trust account.
• Victoria is lifting standards: agents' representatives must hold their own registration from 25 November 2026, and agents and representatives must complete 5 CPD activities a year from 1 April 2027.
• Real estate has long been a franchise-heavy industry: in the last ABS figures, from 2009–10, 17% of businesses in rental, hiring and real estate services were franchisees.

There is no standard fee model, and the Register doesn't record fee rates, so get the full fee schedule in writing and model it against your own commission forecasts.

• Franchise fees: ask whether they are a percentage of gross commission income, a flat monthly fee or both, and whether property management income is included.
• Marketing and technology levies: brand campaigns, listing portal subscriptions, CRM systems and signboards can be charged separately.
• Commission splits: your salespeople's pay comes out of what is left after franchise fees, so model both together.
• Minimum fees: check for minimum monthly amounts that apply even in a slow market.
• Extras: referral programs, conferences, awards nights and training can carry their own charges.
• Illustrative example only: an office earning $1,000,000 in gross commission that paid an assumed 7% franchise fee and 2% marketing levy would pay $90,000 in fees before wages, rent and agents' commissions. These rates are assumptions, not benchmarks.

Licensing differs by state and territory, so check the rules with your fair trading or consumer affairs regulator. Two examples:

• NSW: there are two classes of real estate agent licence. You start with a certificate of registration as an assistant agent, hold it for at least 12 months, then need a class 2 licence for 2 years before you can apply for class 1.
• NSW: class 2 agents can't open or manage a trust account or act as licensee in charge, and an agent licence doesn't let you conduct auctions without separate auctioneer accreditation.
• Victoria: trust accounts must be audited every year by an approved auditor within three months after 30 June, and the signed audit report kept for seven years.
• Victoria: new agents' representatives must register with the Business Licensing Authority and pay a fee from 25 November 2026, and fee changes apply to licence transactions from that date.
• Other states and territories run their own licensing, supervision and trust account rules.
• Ask the franchisor who will be the licensee in charge, or equivalent, of your office, especially if you aren't yet fully licensed yourself.

• Parliament passed the AML/CTF Amendment Bill 2024 on 29 November 2024, extending the anti-money laundering regime to real estate professionals, lawyers, conveyancers, accountants and others.
• From 1 July 2026, businesses that broker the sale, purchase or transfer of real estate, including buyer's and seller's agents, are regulated by AUSTRAC.
• If you provide these designated services, you must enrol with AUSTRAC, meet AML/CTF obligations and complete customer due diligence before you provide the service.
• Property developers selling house and land packages, off-the-plan apartments or new land without independent agents can also be covered.
• AUSTRAC's definition of real estate excludes leases of 30 years or less, so ask an adviser how the rules apply to your leasing work.
• Ask the franchisor what AML/CTF program, training and systems it provides, and who pays for them.

FranchiseScope analysed the Franchise Disclosure Register profiles of 52 real estate franchisors, captured on 19 August 2026. The answers are self-reported by franchisors.

• Setup costs: the median low estimate was $72,900 (37 profiles) and the median high estimate was $350,000 (38 profiles), against $146,984 and $400,000 across all categories.
• System size: the median system reported 18 franchisees (49 profiles), compared with 9 across all profiles.
• Restraint of trade: 35 of 47 profiles (74.5%) include one, well below 90.5% across all categories.
• Goodwill: 3 of 45 profiles (6.7%) say franchisees have any rights to goodwill they generate, compared with 10.5% overall.
• Supply restrictions: 23 of 51 profiles (45.1%) restrict where you buy goods or services, compared with 70.2% overall.
• One-sided changes: 8 of 49 profiles (16.3%) let the franchisor vary the agreement on its own, compared with 27.6% overall.
• Arbitration: 28 of 45 profiles (62.2%) provide for arbitration of disputes, compared with 63.8% overall.

• A rent roll, the portfolio of properties your office manages, gives you recurring income between sales, so check exactly who owns it under the franchise agreement.
• Ask what happens to your rent roll, listings, client database and brand-related domains if you sell, leave or don't renew.
• Check any restraint of trade and non-solicitation clauses that could stop you contacting your own landlords after you leave.
• Sales income moves with the property market, so stress-test your plan for fewer listings and longer selling times.
• People are the business: ask about salesperson and property manager turnover in the network, and what recruitment support the franchisor gives.

• A fee schedule that is vague about what counts as commission income, or about minimum monthly fees.
• An agreement that gives the franchisor your rent roll or database at the end of the term with little or no compensation.
• No plan for who will be licensee in charge, or equivalent, of your office.
• No clear AML/CTF program or support for customer due diligence on sales.
• Earnings claims outside the disclosure document, or projections built on peak-market sales volumes.
• Pressure to sign quickly. The franchisor can't sign until 14 days after you receive the disclosure document, a copy of the Code and the agreement in its final form, and must refund any payment made in that window within 14 days of your written request.

• Confirm the licences you and your staff need in your state or territory, and who will supervise the office and the trust account.
• Get the full fee schedule and model it against conservative commission forecasts.
• Read the goodwill, rent roll, database and restraint clauses together.
• Check the franchisor's AML/CTF program and your enrolment obligations with AUSTRAC.
• Compare the franchisor's Register profile with its disclosure document, remembering that Register answers are self-reported.
• Call current and former franchisees about fees, support, staff turnover and what happened when they left.
• Get independent legal and accounting advice before you sign.