1 Percent Lists

# 1 Percent Lists Franchise Intelligence Report

## Executive Summary

1 Percent Lists offers a disruptive real estate franchise model charging sellers just 1% listing commission versus the traditional 3%. With investment as low as $23K-$59K and no brick-and-mortar requirement, this is one of the most accessible franchise opportunities in real estate. 50+ locations and growing. Best suited for licensed real estate agents seeking a competitive edge through pricing disruption.

## The Business

Founded in 2015 by Grant and Kelly Clayton in Covington, Louisiana, 1 Percent Lists challenges the traditional real estate commission model. Franchisees offer full-service real estate solutions at 1% listing commission, targeting cost-conscious sellers who want professional representation without the typical 6% total commission burden.

The model is virtual-first - no physical office required. Franchisees leverage the brand, technology platform, and marketing support while operating independently.

## The Numbers

- **Total Investment**: $23,000 - $59,000 - **Franchise Fee**: Up to $15,000 (typically $18,000 for exclusive territory) - **Royalty**: 5-6% of gross sales - **Marketing Fee**: None (included in support) - **Contract Term**: 10 years (10-year renewal) - **No physical office required**

**Whats Included**: - Lead-converting website - CRM system - Accounting system - In-house graphic design team - Digital marketing support - Training

## System Health

- 50+ franchise locations across the US - Founded 2015, franchising actively - Growing system in a disruption-friendly market - Low overhead model supports franchisee sustainability

## Franchisee Experience

**Target Candidate**: Licensed real estate agents who are aggressive, want to grow, and have thick skin. Per the founder: Youre going to catch some flak from other realtors for doing what we do. But your clients are going to love you.

**Support**: Every franchisee receives website, accounting system, training, CRM, and access to in-house graphic design and digital marketing teams.

**Earnings Claim**: Company claims average agent made double the national average last year - though this should be verified through Item 19.

**Customer Feedback**: Overwhelmingly positive seller reviews citing savings and agent responsiveness. Some negative reviews mention inconsistent service quality across different franchise offices.

## Risk Assessment

**Industry Pushback**: Traditional agents and brokerages may resist or badmouth the discount model. Franchisees need thick skin.

**Service Quality Variance**: As independently owned franchises, quality varies by location. Some negative reviews cite unresponsive agents.

**Commission Compression Risk**: If the discount model becomes widespread, the competitive advantage diminishes.

**Market Dependent**: Real estate franchises are highly sensitive to housing market conditions.

**Limited Independent Reviews**: Most available information comes from company marketing rather than independent franchisee testimonials.

## Competitive Position

1 Percent Lists competes in the discount real estate brokerage space: - **Redfin**: Technology-driven, employee model (not franchise) - **Clever Real Estate**: Agent matching service - **Traditional brokerages**: RE/MAX, Keller Williams, etc. (higher commission model)

The franchise model provides brand recognition and support that independent discount agents lack, while the low investment makes it accessible.

## Validation Questions

1. What is the actual average gross commission income for franchisees? 2. How do you compete for buyer-side business when offering 1% on listings? 3. What marketing support is provided for local lead generation? 4. How does the company handle territorial overlap or competition? 5. What percentage of franchisees are full-time vs part-time? 6. What is the franchisee retention rate?

## Data Gaps

- Detailed Item 19 financial performance not publicly available - Franchisee turnover rates not disclosed - Limited independent franchisee testimonials - Market share data by territory not available

## Verdict: MODERATE

Attractive low-cost entry into real estate franchising with a differentiated value proposition. The virtual model and included support reduce risk. However, success depends heavily on the franchisees sales ability and local market conditions. Best for licensed agents seeking brand support rather than first-time real estate professionals.