COMMISSION EXPRESS Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$107,800 - $299,300
Franchise Fee
$10,000
Min Cash Required
$75,000
Total US Locations
38
Business Summary
COMMISSION EXPRESS operates a financial services business that purchases accounts receivable from real estate salespeople. Specifically, COMMISSION EXPRESS buys pending real estate sales commissions, a process known as factoring. These receivables are purchased at a discount and then redeemed from the proceeds of the property sale settlements, which typically occur 30 to 90 days after the purchase. COMMISSION EXPRESS franchisees work with real estate professionals to provide them with early access to their commissions.
Corporate History
COMMISSION EXPRESS NATIONAL, INC. was formed as a Virginia corporation on March 30, 1994, and operates under the name COMMISSION EXPRESS. The company began offering franchises in April 1996. Initially, from 1996 to 2008, COMMISSION EXPRESS offered franchise agreements for businesses operating within a protected development territory. Since 2009, COMMISSION EXPRESS has expanded its offerings to include both protected development territories and open market development territories. An affiliated company, Commission Express, Inc., has operated a COMMISSION EXPRESS business with a protected territory in Fairfax, Virginia, serving the Washington, D.C. metropolitan area since April 1992.
Financial Overview
Investment Range
$107,800 - $299,300
Franchise Fee (Low)
$10,000
Franchise Fee (High)
$50,000
Minimum Cash Required
$75,000
Royalty %
9%
Marketing %
1%
Equipment Costs (High)
$12,500
Working Capital
$16,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD's Special Risks section highlights a concern regarding COMMISSION EXPRESS's financial condition, indicating that its financial statements call into question the franchisor's ability to provide services and support to franchisees. Additionally, the Virginia Addendum notes that COMMISSION EXPRESS's estimated initial investment range ($172,600 to $299,300) exceeds its stockholders' negative equity, which was ($278,577) as of December 31, 2024.
Financing Details
COMMISSION EXPRESS may offer financing for up to 50% of the initial franchise fee, but only for franchisees purchasing multiple units under a protected development territory license. This financing can help accommodate staggered openings or reduce immediate capital needs for contiguous, concurrently opened units. The loan accrues interest at 10% per annum, with repayment schedules negotiated between the franchisee and COMMISSION EXPRESS, either through monthly installments or a lump sum. Franchisees can prepay the financed amount at any time without penalty, and no security interest or third-person guaranty is required. However, COMMISSION EXPRESS does not offer any financing for open market development territories.
Performance Metrics
Total US Locations
38
Franchised Units
37
Corporate Units
1
Franchising Since
1996
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
COMMISSION EXPRESS has no litigation history to report. The FDD explicitly states that no litigation is required to be disclosed in Item 3.
Bankruptcy History
COMMISSION EXPRESS has no bankruptcy history to report. The FDD explicitly states that no bankruptcy information is required to be disclosed in Item 4.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, COMMISSION EXPRESS franchisees must meet several conditions. They must not have received a written notice of non-renewal from COMMISSION EXPRESS for good cause (such as failure to cure a material default, withdrawal from the territory, or exercise of a purchase right by the franchisor), must be solvent, must not have abandoned the business, must not be operating in a manner that endangers public health or safety, and must not have repeatedly defaulted on the agreement, submitted false reports, or been convicted of certain crimes. Upon meeting these conditions, franchisees must sign COMMISSION EXPRESS's then-current standard franchise agreement and pay a renewal fee. The new agreement may include materially different terms, such as altered fees, training requirements, territorial rights, and minimum gross income quotas. The development territory may also be adjusted to align with current standards.
Training & Support Program
Franchisor Assistance
Before a COMMISSION EXPRESS business opens, the franchisor provides an initial packet of materials including proprietary computer software, initial training for the franchisee and one manager (lasting about 5 days in the Fairfax, Virginia area or virtually), the Confidential Operations Manuals, specifications for equipment and supplies, samples of initial advertising materials, and design/sign specifications for any professional office the franchisee chooses to open. During operation, COMMISSION EXPRESS offers regional, national, or international conferences, distributes reports on operational improvements and manual revisions, and provides periodic telephone, email, or other assistance on daily operations, marketing, advertising, and financial management. The franchisor also makes replacement manager training available (with fees if more frequent than every 2 years), negotiates volume purchasing arrangements, reviews proposed supplier contracts, and administers a system-wide advertising and promotional fund.
Initial Training Hours
30
Training Location
Fairfax, Virginia, or virtually by Zoom or Microsoft Teams
Ongoing Support
After opening, COMMISSION EXPRESS franchisees receive ongoing support through various channels. They are offered regional, national, or international conferences to foster information exchange and new ideas, which the franchisee (or a principal operating officer/partner) must attend annually (failure to attend 2 of the previous 3 is a material default). The franchisor distributes reports on improvements in administrative, bookkeeping, accounting, marketing, and other operating procedures, as well as revisions to the Confidential Operations Manuals. COMMISSION EXPRESS provides periodic telephone, electronic mail, or other assistance for daily operations, marketing, advertising, and financial management issues. Training for replacement managers is also available, with a fee if training is required more frequently than every two years. The franchisor makes reasonable efforts to negotiate volume purchasing contracts for equipment, supplies, and services, and reviews proposed contracts to ensure they meet system specifications. Additionally, COMMISSION EXPRESS administers a system-wide advertising and promotional fund.
Franchise Requirements
Ideal Candidate Profile
COMMISSION EXPRESS seeks franchisees who are committed to the personal and continuous management of their business. Ideal candidates, or their designated managing shareholder, member, or partner, must personally manage the franchised business at all times. If a franchisee operates multiple territories, each must have a full-time trained manager. Given that the business involves financial services, COMMISSION EXPRESS emphasizes the importance of projecting an image of stability and professionalism, requiring adherence to the standards outlined in their Manuals.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
COMMISSION EXPRESS offers two main types of territories: protected and open market. For a protected development territory, COMMISSION EXPRESS defines territory size based on average monthly residential real estate sales using data from local Multiple Listing Services (MLS) or real estate associations. Small territories include up to 1,000 monthly sales, medium territories range from 1,001 to 2,000 monthly sales, and large territories cover 2,001 to 4,000 monthly sales. COMMISSION EXPRESS reserves the right to re-designate territory size annually based on these sales figures and may subdivide territories if sales growth exceeds the large territory definition. For an open market development territory, medium territories include 1,001 to 2,000 monthly sales, and large territories include 2,001 to 4,000 monthly sales. In open market territories, COMMISSION EXPRESS permits only up to one business for every 1,000 (or part thereof) average monthly residential real estate sales. While a protected territory generally means COMMISSION EXPRESS won't operate or grant others the right to operate a competing business under the same or different trademarks, the FDD also states franchisees will not receive an 'exclusive' territory and may face competition from other franchisees or franchisor-controlled channels within their designated area.