The head of one of the industry’s biggest real estate groups has said franchise fees should be questioned, as they penalise agents for being successful.

“The more successful you are, the more you pay – that might make sense for a tax system, but it makes far less sense for a real estate system,” Paul Davies, One Agency’s founder and CEO, said.

Mr Davies added that this was the result of an old fashioned franchise business model that’s weighted heavily in the interest of the franchisor.