A no-franchise mortgage broker model allows brokers to operate independently under an aggregator’s licence and lender panel without paying franchise fees, purchasing a territory, or signing a retail lease.
Traditional franchise model. Under a franchise, the broker pays ongoing fees (typically a percentage of commissions) to use the franchise brand, access the lender panel and software, and benefit from the brand’s marketing. The broker is often required to operate from a branded shopfront, with the lease obligation creating a fixed monthly cost.
No-franchise model. In a direct aggregator model, the broker accesses the aggregator’s lender panel and compliance infrastructure, retains a higher share of commissions, and operates from wherever they choose — a home office, a co-working space, or a serviced office. There is no territory fee, no ongoing brand royalty, and typically no retail lease requirement.
Financial difference. A broker writing $40M per year on a 0.55% upfront commission earns $220,000 gross in upfront revenue. A franchise fee of 10–15% of gross commission equates to $22,000–$33,000 per year paid to the franchisor — income that would otherwise remain with the broker.
Suitability. No-franchise models suit established brokers with their own client base who no longer need the brand recognition or lead generation the franchise provides. New brokers may benefit from franchise infrastructure while building their initial book, then transition to an independent model as their business matures.
