The benefits of real estate franchising for the Belgian entrepreneur

Whether an expert or amateur in Belgian real estate, are you looking to start your own business and become independent? Would you like to set up your own agency? Then there are several choices for the concept of your future business. Will you opt for having total freedom, but also the associated risks, in setting up your own enterprise? Or would you rather join a franchise network and benefit from the brand recognition and experience of a major Belgian brand? The franchise system has several advantages for those seeking to become an independent real estate agent. To help you make your choice, Engel & Völkers have prepared answers to a few questions about real estate franchising in Belgium.

What is a franchise?

The franchise system is based on a collaboration between an independent real estate agency, called the franchisee, and a large Belgian real estate brand, called the franchisor. By paying a fee, the franchisee can take advantage of the franchisor's proven concept. This allows the entrepreneur to start with a good knowledge base and benefit from the franchisor's brand recognition. In addition, the franchisor can manage the marketing of the agency and provide tools to the franchisee.

What types of franchises are there in Belgium?

The franchise formula may be very different depending on your choice of franchisor and franchise network. However, we generally talk about two types of franchise formulas in Belgium: hard and soft. Hard franchising has many predefined rules and more binding agreements on many aspects of the business, especially marketing. The advantage is that the franchisee has a lot of support from the franchisor and that he becomes part of an already well-established concept. Soft franchising, on the other hand, gives the franchisee more freedom and the flexibility to respond better to the local market.

How should you choose your Belgian franchisor?

There are many international and Belgian real estate franchisors. They differ in their types and concept. Making a good choice will be important for the future franchisee, since a good franchisor is essential for the success of his business. It is therefore a good idea to make a list of of Belgian franchise networks whose concepts seem promising, gather information about the various Belgian real estate franchisors, and make a short list. Visiting the various franchisors and some of their franchised agencies will also help you to get to know the franchise network.

What are the costs of a franchise?

Franchise costs also vary from franchisor to franchisor. Most of the time, Belgian franchisors charge entrance fees and royalties. These entrance fees are used primarily to finance the launch of the franchise, and the initial training offered by the franchisor. The amount may therefore vary depending on the type of franchise formula. Some franchisors also provide a start-up loan. The royalty may also vary similarly. Some franchisors charge a percentage of your business's income, others a fixed amount. Marketing costs can also be accounted for separately or form part of this fee.

Is a franchise for me?

The answer to this question is often "yes"! In fact, the franchise system has benefits for all types of entrepreneurs. Experts will be able to take advantage of the franchisor's tools and brand recognition to give themselves an advantage when launching their real estate agency. People with little knowledge of Belgian real estate, on the other hand, will be able to receive initial training. The franchisor's assistance will help the real estate agent take his first steps in the field.

Engel & Völkers offer a franchise concept developed for start-ups or real estate professionals, and even those without previous real estate experience. As a franchisee, you will be able to take part in Engel & Völkers' training academy, which is dedicated to the training of franchisors of all levels of experience. Learn more about the Engel & Völkers franchise concept by clicking on the following link.