1 Percent Lists

Homeowners continue to lose substantial equity under traditional real estate commission structures, which commonly range from 5% to 6% of a property’s sale price. The median existing home sale price in the United States reached approximately $389,800 in 2023, and a 6% commission on that amount equals $23,388 in selling costs before the seller receives net proceeds. This cost has increased interest in brokerage options that offer lower fees without removing professional assistance. 1 Percent Lists Franchises was created to address that concern by providing a full service real estate experience with a listing side commission that is typically 1%. The parent company’s specific founding year is not publicly disclosed, but the brand began franchising in 2020. Since then, the system has grown to 48 total units, including 47 franchised units and 1 company owned unit. The structure gives the brand a small corporate footprint while placing most locations with franchisees. 1 Percent Lists Franchises operates in the discount brokerage segment and emphasizes full service support as part of its offer. The model is intended for sellers who want professional help while keeping more of their home equity. The brand seeks customers who are focused on selling costs but still expect comprehensive brokerage assistance and support through the property sale process.

Interest rates and inventory levels affect annual results, but the market recorded a compound annual growth rate of approximately 3% to 5% over the decade before recent economic changes. In 2023, approximately 4.09 million existing homes were sold, representing trillions of dollars in transaction value. Homeowners have become more comfortable using digital tools and data to research property values and compare service providers, which has increased demand for transparency and value. Technology is also widely used for property searches, virtual tours, and online documentation, raising expectations for efficient and convenient transactions. Higher housing costs and the broader cost of living have made sellers more attentive to commissions and other selling expenses. These conditions support value focused services such as the 1 Percent Lists Franchises model. Population growth continues to support housing demand, while home equity appreciation gives sellers another reason to protect their investment from large commissions. Professional guidance remains necessary for the legal and financial aspects of property transactions, supporting continued demand for brokerage services. Franchise investors may find the sector attractive because a brokerage can operate with limited overhead, expand its operations, and receive revenue from transaction fees. The market is fragmented among independent agents and large national brands, leaving room for models that address specific seller concerns. Technology focused and value oriented brokerages are challenging traditional commission structures as consumer expectations change.

The 1 Percent Lists Franchises franchise fee is $15,000. Across the wider franchise industry, average franchise fees often range from $30,000 to $50,000, and fees can exceed $100,000 for established brands in high capital sectors. The brand’s lower fee reduces the initial payment required to enter the real estate brokerage sector. Total initial investment ranges from $21,870 to $59,560. By comparison, a typical retail or food service franchise can require an initial investment ranging from $150,000 to $500,000. The 1 Percent Lists Franchises estimate includes the franchise fee, possible leasehold improvements for a physical office, initial marketing, required technology and software subscriptions, and working capital for the early operating period. A physical office may not be necessary because many real estate brokerages can operate with a limited physical footprint. The liquid capital requirement is $5,000. This requirement limits the immediate cash needed to obtain franchise rights and begin operations. Franchisees also pay a royalty fee equal to 5% of gross revenue. An advertising fee is not specified. The 5% royalty supports the ongoing system, brand development, and assistance supplied by the franchisor. The combination of a $15,000 franchise fee, an initial investment of $21,870 to $59,560, a $5,000 liquid capital requirement, and a 5% royalty gives buyers a lower cost structure than many franchise alternatives. For a buyer entering real estate with controlled financial exposure, the main financial question will be whether local transaction volume can support operating costs and the continuing royalty.

A 1 Percent Lists Franchises unit is built around an efficient brokerage operation that uses current real estate practices to provide full service at a lower listing commission. Daily work centers on generating and converting leads, consulting with clients, valuing properties, preparing and marketing listings, negotiating offers, and managing closings. Franchisees are expected to use customer relationship management software, digital marketing platforms, and local networking to build activity in their territory. Staffing can remain limited. A franchisee may begin as the primary broker or owner and work with independent real estate agents. Those agents generally receive commission splits and handle direct client relationships and transactions, which can reduce the franchisee’s fixed payroll expense. The available format can also reduce occupancy costs. A location may operate from a home office or a small shared executive suite instead of a traditional retail space. That approach is consistent with the initial investment range of $21,870 to $59,560. The brand provides an initial training program covering operational knowledge, sales methods, and technology use. Training is expected to address proprietary software, marketing methods, legal compliance, and the 1 Percent Lists Franchises value proposition so that locations can follow a consistent approach. Corporate support continues after opening through updated training modules, marketing materials, technology improvements, and direct operating guidance. This assistance is intended to help franchisees respond to market changes and improve performance. Territory arrangements typically provide exclusive geographic areas, reducing competition among franchisees and giving each owner a defined market for sales and marketing. Because the model uses limited staffing and a comparatively low investment, it can support multi unit ownership. A successful franchisee may add adjacent or strategically selected territories and extend operations over time.

Buyers therefore need to assess the opportunity using industry reference points and the economics of brokerage operations. A brokerage receives revenue from a percentage of transaction value, commonly through commission splits with agents. Under the 1 Percent Lists Franchises model, the listing commission is reduced to 1%, so the business depends on generating a higher number of transactions. The system has expanded to 48 units, including 47 franchised units, since franchising began in 2020. That represents average growth of approximately 16 new units per year and indicates that franchise investors have shown enough interest to support continued expansion. The 5% royalty is lower than higher industry averages, leaving a greater portion of gross revenue with the franchisee before other expenses.

1 Percent Lists Franchises began franchising in 2020 and has grown to 48 total units. The network includes 47 franchised units and 1 company owned location, which means that nearly all locations operate under the franchise model. The system has added approximately 16 net new franchised units per year. This growth gives the brand a developing position within the competitive real estate brokerage sector. Its main point of difference is the 1% listing fee for a full service real estate experience, compared with the 5% to 6% commission rates commonly associated with traditional brokerage services. The lower fee can allow sellers to keep thousands or tens of thousands of dollars that might otherwise be paid in commissions, depending on the property’s sale price. The brand also uses digital tools to support lead generation, client communication, marketing, listing management, virtual showings, and paperless transactions. Customer relationship management systems and other digital platforms may reduce administrative work and support a more consistent client experience. The combination of lower pricing and technology gives the system a way to compete for homeowners who want both professional service and lower selling costs. Its expansion across 48 units suggests that the operating structure and pricing approach have attracted franchisees in different markets. The extent of future growth will depend on the brand’s ability to maintain service quality, generate seller leads, and support franchisees as the network expands.

The prospective franchisee profile combines entrepreneurial initiative, sales ability, and a strong focus on customer service. Previous real estate experience can help, but it is not an absolute requirement because the initial training program is intended to teach qualified owners the brand’s methods and systems. Candidates should be able to communicate with clients, negotiate transactions, understand local market conditions, generate leads, and participate in community outreach. They also need to be comfortable with a volume driven model because a lower commission requires more transactions to reach desired revenue levels. An ability to use technology for marketing, client management, and daily operations is important within the system. The initial investment range of $21,870 to $59,560 and the lean operating structure may suit owners who plan to develop more than one territory. Franchisees focused on growth can acquire additional areas and apply their operating knowledge across multiple markets. This may increase revenue potential while expanding the brand’s presence in selected regions. The system began franchising in 2020 and currently has 48 units, leaving potential territory availability across numerous United States markets. New franchisees may therefore find opportunities in areas that are untapped or underserved, subject to actual availability and franchisor approval. The period from signing the franchise agreement to opening generally ranges from three to six months. Timing depends on local licensing requirements and the franchisee’s preparation. The standard franchise agreement term is 7 years, giving the owner a defined period to establish operations, build local transaction volume, and seek a return on the investment within the exclusive territory.

The brand addresses seller concern about traditional commissions by offering a full service model with a 1% listing fee. The initial investment ranges from $21,870 to $59,560, the liquid capital requirement is $5,000, and the royalty is 5% of gross revenue. Since beginning franchising in 2020, the system has grown to 48 units, including 47 franchised locations and 1 company owned location. The model’s financial outcome will depend heavily on the ability to generate enough transactions to offset the lower listing commission while keeping operating expenses controlled. PeerSense provides independent franchise research and commercial capital advisory support for buyers evaluating opportunities such as this one. PeerSense is not a lender and does not fund or approve loans. Buyers can use the available brand information as a starting point for their own financial review and professional advice.