Why choose to become a franchisee?
Looking to take your first steps in the real estate world and want to set up your own estate agency. During your research, you came across a model that seems interesting at first glance: the franchise system. But what are the advantages to such a model? Here are the main pros of the franchise.
What is a franchise?
First of all, what exactly is a franchise? A franchise is a partnership contract between a brand (the franchisor) and a contractor (the franchisee) that creates legal and financial obligations between its two partners. The franchisee benefits from the reputation of the franchisor's brand in addition to its know-how and its constant assistance in all its projects. In return, the franchisee must adhere to the brand’s rules. This short description already reveals some advantages of the franchise, which you will find below in more detail.
Be attached to an established brand
The first advantage to joining a franchise network is of course that the franchisee takes advantage of the franchisor’s brand image. Future tenants, buyers or sellers want to work with a trustworthy agency and generally leave aside little or unknown brands for the benefit of more well-known brands with an already established image. By thus becoming a franchisee, you join a recognised brand and benefit from an image already known to the general public. This association guarantees the success of the agency, since customers, reassured by operating with an agency attached to a known brand, will be more inclined to ask for its services.
Take advantage of the many tools and services available
The second advantage of the franchise is the many tools and services that the franchisor makes available to franchisees. Thus, the network facilitates the task of franchisees with its know-how to ensure the success of their projects. The franchisor's ongoing support is one of its services, and often it provides the franchisee, for example, with a personalised and autonomous website, easy access through Intranet, real estate management software and reliable communication effective at a national level. The franchisee therefore benefits from the experience and tools that have already established by the franchisor and does not need to develop them itself.
Integration into the franchise network
Permanent contact with many other agencies is another advantage of the franchise. When franchisees start out their venture, they become integrated in the franchise network that brings together hundreds of agencies. All these members are in constant contact and share their experience and expertise through forums or events organised by the network. Therefore, the franchisor benefits from the experience, advice and tips of seasoned professionals and it is at the same time aware of new trends in the real estate world or new rules and administrations that govern the market.
Access to efficient and reliable methods
The experience of this network also provides access to many proven methods. Various strategies that have already been carried out are suggested to the new franchisee. Before embarking on a project or testing a method, the network allows the franchisee to know not only all the risks and pitfalls related to its projects, but also to know its strong points and main assets. Thus, the franchisor knows all the mistakes not to do and can make informed decisions.
Integrate a franchise network
With all these benefits, it is not surprising that 80% of franchise estate agents enjoy a higher turnover according to a study by the N.A.R (National Association of Realtors). Integrating a franchise is a good way to building a safe business with being supported by an already established brand. Becoming a franchisee is not only a reliable decision, but also a good way to start out with many benefits. Now all you have to do is find out about potential franchisers and create your own business!