How to finance your entry into the real estate franchise

Engel & Völkers franchise system: why starting as a franchisee is worth it

Why is opening your own Engel & Völkers shop a smart decision—even without substantial equity? Franchising has long been one of the most attractive options for starting your own business. Around 1,000 franchise systems with approximately 120,000 franchisees in Germany alone underscore this growing trend—and it’s on the rise.

What makes franchising so popular? When it comes to launching a business and weighing up traditional startup methods against a franchise partnership, more and more entrepreneurs are choosing the latter. The experience of our expansion managers shows that many founders prefer to have a strong partner at their side—and want to build on a proven business model. The Engel & Völkers franchise system offers you exactly that—and much more.

As a franchisee of one of our available license areas in Germany or Austria, you’ll gain access to emerging real estate markets and immediately benefit from the strength of our prestigious brand. This not only makes acquiring clients and hiring employees much easier, but also gives you continuous guidance from our experienced experts when it comes to key decisions. With this solid foundation, we make your transition into self-employment straightforward—providing both security and autonomy.

Wondering how to finance your investment even without the required equity? We’ve explored and prepared your financing options.

Engel & Völkers franchise system: How franchisees succeed in securing financing

According to the experience of our expansion managers, every successful financing strategy begins with a solid financial plan that defines the required capital investment as precisely as possible. The business plan forms the conceptual foundation of any franchise launch and includes a detailed analysis of all economic, legal, and financial aspects of the new business.

Our franchise model offers the distinct advantage of allowing you to work with reliable figures. Thanks to our strong presence with over 1,000 locations in more than 35 countries and a network of 16,500+ professionals, we can provide solid benchmarks for your financial planning. This makes it possible to develop a well-founded concept—an essential requirement when applying for funding. Whether you’re approaching banks, public funding institutions, or business partners: without a comprehensive business plan, launching your franchise and securing external financing will be difficult.

But what financing options are available once the groundwork is laid? Engel & Völkers has identified four promising paths for prospective franchisees.

1. Starting your franchise with personal capital

According to our expansion managers, founding a franchise with personal capital offers the most advantages — and for good reason. The ability to absorb potential losses, the absence of interest charges, and an improved credit rating are some of the most compelling benefits.

Additionally, many franchise systems require a certain amount of personal investment to ensure that the franchisee is committed and personally invested in the success of their business. If your liquidity falls short of this requirement, you can consider entering into partnerships, seeking support from private investors in your network, or involving so-called business angels. These are private investors who not only contribute capital but also offer strategic management support.

If your franchise contract does not explicitly require equity capital, or if the financing demands exceed your budget, there are additional funding options to consider — which we introduce below.

2. Bank loans to finance your real estate franchise

Loans — and particularly bank loans — are among the most common tools for financing a franchise entry. As a franchisee, you benefit from the fact that your future business can act as a form of security. In this case, “security” doesn’t mean a financial guarantee, but rather the strength of a well-known brand and a proven business model. A common option is to secure a line of credit, which ensures liquidity at all times. If your capital needs are more substantial, long-term financing via a traditional loan may be necessary.

3. Founding your business with public funding programs

Public funding also represents an attractive financing path for prospective franchisees. In Germany, the KfW (Kreditanstalt für Wiederaufbau) is a highly recommended point of contact, as it manages some of the most important national funding programs. Additionally, support from guarantee banks or specialized instruments such as the Mikromezzaninfonds Deutschland can be considered.

KfW currently offers three widely used funding programs*:

• The ERP Start-up Loan is a solid initial option, offering up to €100,000 in credit with terms of up to 10 years.

• For greater financial needs, the ERP Capital for Start-ups program allows loans of up to €500,000. This is considered subordinated debt, functioning similarly to equity capital, with a repayment period of up to 15 years.

• If even higher sums are needed, the ERP Universal Start-up Loan may be suitable to cover more extensive capital requirements.

It is important to note that the approval of public funding is contingent upon your local bank’s assessment. Your bank will evaluate whether your application meets the necessary conditions and will then apply for the funds on your behalf — making your business plan a key component of the process. If approved, the loan is disbursed through your bank, but under the favorable terms defined by the respective funding program.

*Conditions and eligibility criteria are subject to change at any time.

Engel & Völkers franchise system: Become a franchisee now

As you can see, there is a wide range of options for financing your entry into the world of real estate franchising. Whether equity, loans, public subsidies or crowdfunding: Would you like to know which type of financing is best suited for your start in the Engel & Völkers franchise system? Our expansion managers will be happy to advise you in detail and work with you to develop the right concept.

Get in touch with our expansion managers now and find out more about our available license areas in Germany and Austria. Engel & Völkers real estate franchise - we look forward to hearing from you!