Hello, I and my spouse will be moving soon, probably to North Carolina. I am already an associate broker in NYS, and plan to transfer my licensing requirements so that I can get my broker's license in NC, as well. After I learn the NC real estate ropes, I think I'd like to open my own brokerage and am most particulary interested in EXIT Realty and Avalar. I've read that Keller-Williams is mostly smoke and mirrors. Does anyone have any experience with either of these franchises? If so, what was it like?

Hey CeeFee,

I looked into both Avalar & Exit. I decided to stay away from "residual" income franchises.

I didn't want my agents to focus on recruiting. I want them to produce.

I felt the "residual" income was just a lure to get them in the door - promising retirement income & such. Everyone I've talked to that went to Exit or KW really went for the higher split, not residual income. Exit here is 70/30 & I believe KW is 80/20. So I decided on a franchise that offers higher split than even those offer.

PLUS, the residual income is capped. So technically you are just getting back what money you put in. I think the likelihood that agents you bring in are going to stay with Exit is slim since the dropout rate is high & real estate offices seem to have a revolving door.

If you have a strong office with great leadership it doesn't matter what franchise you are opening. If you think the residual income alone will draw them in then you are mistaken. I offer 98% commission & STILL have a hard time recruiting after a year in business. Plus, if you're in an area where there isn't an Exit or Avalar then you have the name recognition uphill battle too.

On this topic, I think we would all benefit from someone sharing their experience in starting up a brokerage with any franchise from the day they started looking at options to the day after they closed their first escrow.

Any takers?


R