How Does the NextHome Franchise Work?

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Operating model in one answer

Under the 2026 FDD, a NextHome franchise operates a branded real estate brokerage office through the Standard Model or Large Office Model. Licensed Associates represent buyers and sellers under a full-time Principal Broker, transactions use required technology and the local Multiple Listing Service, and the franchisee reports activity while the franchisor controls brand, system, supplier and compliance standards.

Legal franchisor: NextHome, Inc., a Delaware corporation
FDD basis: 2026 FDD issued January 7, amended February 13 and May 29, 2026
Operating models: Standard Model and Large Office Model; new or converted brokerage offices
FDD sections reviewed: Items 1, 6, 8, 11, 12, 15, 16, 19 and 20; Franchise Agreement and addenda
Item 20 reporting date: September 30, 2025
Research checked: August 8, 2026

The FDD names eXp World Holdings, Inc. as ultimate parent after the May 6, 2026 acquisition; later materials report its transition to AGNT, Inc. See the official SEC-filed announcement.

2Operating modelsStandard Model and Large Office Model.

587Franchised outletsAt September 30, 2025; zero company-owned.

150+Large Office thresholdLicensed Associates maintained in aggregate across model offices.

5 daysMonthly reporting deadlineReports are due after each calendar month ends.

Source: 2026 FDD, Items 1, 11, 20, pp. 4-5, 42, 62-71; Agreement §10.3; Large Office Model Addendum.

Offering and customers

What does a NextHome Office actually sell?

The Office sells real estate brokerage services, not a standardized retail product. Authorized work includes purchase, sale, listing, referral, relocation, leasing, exchange and other transfers of real estate interests when permitted by state law. Residential buyers and sellers are the disclosed core market; the cover also authorizes residential and commercial brokerage activity.

A Licensed Associate is a broker, salesperson, Sales Manager or equivalent on the Office’s state licensing roster. Licensed Associates perform client representation; the Principal Broker is legally responsible to the state licensing body for their acts. No customer class is excluded from authorized brokerage services.

The Casan Collection® luxury brand requires a Casan Collection Addendum. Participating Licensed Associates must maintain membership with the Institute for Luxury Home Marketing and complete Luxury Online Training; the Institute is the only approved supplier for that training. See the Institute’s official NextHome Casan page.

Source: 2026 FDD, Items 1, 8, 16, pp. 4-5, 32-35, 54; Agreement §8.6; Casan Collection Addendum §§1, 4-6. See NextHome’s buyer/seller site.

Format differences

How do the Standard Model and Large Office Model differ?

Both models use the branded brokerage system. The large-office format adds a five-year term, a 150-Licensed-Associate threshold and Full-Tech Plan/Lite-Tech Plan elections. Qualifying commonly controlled Offices cannot mix the two models.

Standard Model

Available for a new or converted Office under a one-year or five-year Franchise Agreement. Associate and Team classifications affect royalty mechanics, while required software, branding, local MLS membership and monthly reporting remain part of the operating system.

Large Office Model

Requires a five-year Franchise Agreement, a Large Office Model Addendum, at least 150 Licensed Associates across qualifying Offices and then-current franchisor criteria. Each participating associate is assigned to the Full-Tech Plan or Lite-Tech Plan, subject to plan-change timing rules.

The Full-Tech Plan is the broader franchisor-specified technology bundle; the Lite-Tech Plan is a reduced-feature core bundle. Public franchising materials describe CRM, IDX website/mobile app, marketing automation, transaction management, reporting, commission disbursements and recruiting tools. The contract still allows the franchisor to designate required software.

Source: 2026 FDD, Item 1 p. 4, Item 6 pp. 25-29, Item 11 pp. 42-43; Large Office Model Addendum. See NextHome franchising and the Large Office Model announcement.

Transaction workflow

How does work move through a NextHome Office after opening?

The Franchise Agreement creates a practical operating chain: approved demand generation, licensed representation, MLS and transaction administration, closing, reporting and quality control. The Principal Broker supervises that chain, while the franchisee entity remains responsible for compliance.

Stage 1

Demand and client intake

Actor: Franchisee and associates.
Action: Generate buyer or seller inquiries through local relationships, approved advertising and authorized channels.
System/asset: Branding Guidelines, approved marketing and CRM/web functions.
Output: A client relationship assigned to an associate.

Stage 2

Representation and market activity

Actor: Licensed Associate under Principal Broker supervision.
Action: List, show, refer, lease, negotiate or represent a buyer under authorized services and state law.
System/asset: Local Multiple Listing Service, approved forms and required technology.
Output: A listing, referral, lease or purchase transaction moving toward contract.

Stage 3

Transaction administration

Actor: Licensed Associate, Office staff and Principal Broker.
Action: Manage transaction records and books through franchisor-provided or designated transaction/accounting software.
System/asset: Company Intranet, required software and MLS data feed where permitted.
Output: Complete brokerage records and a transaction ready for closing.

Stage 4

Closing and fee trigger

Actor: Office, associate and closing parties.
Action: Close the transaction and record its side, associate and Team classification.
System/asset: Required transaction records and reporting system.
Output: A closed transaction that can trigger applicable transaction-based royalty and Technology Fee mechanics.

Stage 5

Monthly reporting and audit trail

Actor: Franchisee and Principal Broker.
Action: Submit listing/sales activity, gross compensation per transaction, Licensed Associate identification and requested reports within five days after month-end.
System/asset: Company Intranet and prescribed records retained at least three years.
Output: Data the franchisor can use to verify compliance and reconcile Office activity.

Stage 6

Client feedback and correction

Actor: Franchisor and Office.
Action: The franchisor may seek client feedback; the Office must correct deficiencies identified through standards or inspection.
System/asset: Client contact data, Franchisee Materials and Branding Guidelines.
Output: Compliance follow-up and corrected practices where required.

Source: 2026 FDD, Items 6, 8 and 11, pp. 14-29, 32-35, 39-46; Agreement §§6.2, 7.3-7.4, 8.5-8.13, 10.1-10.3.

People and accountability

Who performs each operating function?

Owners need not supervise personally, but the franchisee entity remains responsible. It must continuously employ a licensed Principal Broker who devotes full time and best efforts to management and supervises financial and operational activity directly or through a Sales Manager.

Franchisee entity

Employs the Principal Broker and qualified personnel.
Runs recruiting and licensed-agent relationships.
Sets customer pricing within law and System rules.
Maintains Office, insurance, licenses, records and reports.

NextHome, Inc.

Sets System specifications, Franchisee Materials and Branding Guidelines.
Provides Intranet access and required software.
Approves advertising, location and suppliers where required.
May inspect the Office, copy records and obtain client feedback.

Licensed and third-party layer

Licensed Associates perform brokerage work under Principal Broker supervision.
Sales Manager(s), when used, support day-to-day supervision.
The local Multiple Listing Service supplies listing infrastructure.
Approved or Designated Suppliers provide specified inputs.

Owner participation

Owners need not supervise personally. The Principal Broker must provide full-time, best-efforts management; a successor is required promptly if that person leaves and must complete required orientation within 60 days.

Source: 2026 FDD, Item 15 pp. 53-54; Agreement §§9.1-9.3. The FDD does not disclose a fixed employee count, shift structure or staffing ratio.

Technology, suppliers and controls

Which systems and suppliers are mandatory?

The franchisor requires its transaction-management/accounting software, proprietary and designated third-party software, local MLS membership, compliant branded materials and any designated sole-source inputs. The vendor list is not permanently fixed: it can revise specifications, supplier status and technology requirements during the term.

Company Intranet and software

Runs transaction management, accounting, reporting and communications. The Office must maintain compatibility and use software or hardware the franchisor specifies.

Multiple Listing Service

The Office and each Licensed Associate must remain in good standing. Where rules allow, the Office must provide listings-data access to the franchisor and its product or service providers.

Branded and proprietary goods

Items bearing NextHome Marks must come from Designated Suppliers. Each Licensed Associate must order business cards from the Designated Supplier within 15 days of affiliation.

Approved affiliates

Optional approved suppliers include NextMortgage, Success Lending, Zoocasa, Fyxer AI, Clearwater, eXp Commercial/eXp International, SUCCESS Enterprises, eXp World Technologies, Agent Options, Sisu Software and eXp Realty. The franchisor may designate relevant services as required on notice.

Technology requirement

The franchisor may require new equipment or software, can be the sole software supplier, and can access Office records and client information held in its or integrated supplier systems. The franchisee must disclose that access to licensed personnel and clients.

AI control

The Franchise Agreement generally requires written approval for AI Technology. Narrow internal productivity use is allowed if franchisor confidential inputs are protected; consumer-facing AI, marketing analytics, lead qualifying, targeting, profiling and scoring fall outside that exception.

Source: 2026 FDD, Items 8, 11, pp. 32-35, 42-44; Agreement §§6.2, 8.6-8.10, 10.2-10.3. See NextHome’s technology overview.

Marketing, territory and location

What does NextHome control, and what remains local?

The franchisee controls local brokerage execution and customer pricing. The franchisor controls Marks, Branding Guidelines, location approval, advertising approval, inspections and System standards. The franchise has no exclusive territory: its grant is tied to an Approved Location, not a protected customer area.

Local advertising is permitted, but new artwork or copy must be submitted for approval at least two weeks before the proof deadline. The franchisor has no formal System advertising program or obligation to advertise in a franchisee’s area, although it periodically conducts Internet marketing. No fixed lead volume is promised to an Office.

The franchisor, affiliates and other franchisees may list property, solicit clients, market and perform services in any area or for any client under System standards. Using the Internet, telemarketing or other direct channels to make sales, rather than advertise, requires prior written approval. A home-based Approved Location is allowed, but clients may not visit it.

A temporary New Development Office needs franchisor approval and may operate only for the approved period. Relocating the main Office also requires approval and then-current appearance and function standards.

Territory limit

There is no exclusive or protected territory. The key protected asset is the right to use the NextHome System and Marks from the Approved Location; it is not a right to exclude another franchisee, affiliate or alternative distribution channel from nearby clients.

Source: 2026 FDD, Items 11, 12, pp. 41, 47-48; Agreement §§4.1-4.3, 8.1-8.2. See NextHome’s national site.

System footprint

What does Item 20 show about the operating network?

Item 20 shows a fully franchised U.S. outlet base at the disclosure-period year end: 587 franchised outlets and no company-owned outlets on September 30, 2025. End-of-year franchised outlets rose from 602 in 2023 to 608 in 2024, then fell to 587 in 2025.

NextHome franchised outlets at fiscal year end

Exact Item 20 counts; company-owned outlets were 0 in each year.

Interpretation: the network remained entirely franchised in Item 20, while the exact year-end outlet count declined by 21 during 2025. In that year, Item 20 also reports 42 openings, 9 terminations, 24 non-renewals, 30 outlets that ceased operations/other reasons, and no franchisor reacquisitions. Source: 2026 FDD, Item 20, Tables 1, 3 and 4, pp. 62-70.

Buyer verification

Which operating details should be verified before relying on the model?

Several live operating inputs can change after FDD issuance. Confirm the current software bundle, supplier list, local MLS integration and model-specific rules that will apply to the proposed Office and state licensing roster.

Confirm Standard Model versus Large Office Model and how the 150-Licensed-Associate test applies across Controlled Affiliates.
Obtain current Full-Tech Plan/Lite-Tech Plan product lists, required software, integrations and data-access permissions.
Review current Designated Supplier and Approved Supplier lists, sole-source items and any newly mandatory affiliate service.
Confirm local MLS membership and listings-data-feed rules.
Verify the Principal Broker/Sales Manager structure and Licensed Associate reporting classifications.
For Casan Collection, confirm Institute for Luxury Home Marketing requirements and required modules.
Review AI Technology approvals before consumer communications, lead qualification, analytics or profiling.

Public operating context and current system status: NextHome franchising; NextHome acquisition announcement; official parent-company acquisition release.

Operating-model synthesis

What is the central operating logic of a NextHome franchise?

The unit earns brokerage compensation through authorized real estate transactions completed by Licensed Associates. The franchisee’s central job is compliant brokerage management—Principal Broker supervision, people, records and reporting—inside the required technology and supplier framework. The franchisor’s strongest control is its ability to change System, software, data and supplier requirements.

The key format distinction is the Large Office Model: five years, at least 150 Licensed Associates across applicable Offices, and Full-Tech Plan/Lite-Tech Plan elections. Territory is non-exclusive. The largest undisclosed operating question is the current required technology bundle and Designated Supplier roster, because both can change after FDD issuance.