The real costs of a franchise in Belgium

Are you fascinated by the Belgian property market ? Are you looking to start up your own business and become an agent? While you've been researching this possibility, you'll have discovered the franchise system, a model based on a partnership between an independent agency, the franchisee, and a major brand, the franchisor. If you already have one or other brands in mind and perhaps you've already found a premesis for your agency, you must of course calculate the future costs of your project. What charges do you need to include? What costs are involved in the franchise system? Here is all you need to know about how to set up your own estate agency franchise.

Firstly: Registration fees

One of the costs related specifically to franchises is the entry fees to join the network. To join Belgium's complete network of franchised estate agencies, most franchisers ask a new franchisee to pay registration fees.

These registration fees serve several purposes. First, they separate the wheat from the chaff for the franchisor. By paying the registration fee, you show that you’re ready to make a committment and are serious about signing up to the brand. Secondly, there are also the costs of using the concept, products and services. These services, such as launch training and ongoing training, development tools for your agency along with many others, allow the franchisee to start off on good footing. Finally, registration fees are used to cover the franchisor's expenses to support the franchisee during the initial period, which is often very useful for the franchisee, especially if they are just starting out in the property market.

Don’t underestimate the costs before launching

Entry fees are not the only costs you need to consider when launching your business. There are many expenses involved in getting your premises ready before you open your agency. First, of all, there’s of course your rental charges for the premises. But you must also consider all the costs for kitting out your premises before opening for business.

As these costs vary greatly depending on your situation, for example where you are located in Belgium and what type of premises you have available to you. But also they may depend on what your franchisor requires. All of these costs should be assessed before investing in your project. Don't be surprised by the level of investment required before opening your agency.

Other charges: Royalties, staff costs etc ...

Besides registration fees, there are of course other costs to consider when starting your franchise. Firstly, the royalties that your franchisor will ask you to pay. These might be in a variety of forms depending on your Belgian franchisor. Some ask for a percentage of your turnover or it could be a fixed sum payment. It therefore makes sense to think about what kind of model not only best suits you, but that will also be the most beneficial to your business. In any case, think about whether the franchisor calculates the costs of marketing separately, known as "marketingfree", or if these fees are already included in the fees. Other miscellaneous start-up costs include insurance, rent, gas, water, electricity and many others. Think about staff costs as well if this applies to you. It's better to calculate your fixed costs for the first year which are not related to your turnover, to uncover the sum in detail that you need to personally invest. Finally, don't forget to take your own living costs into account.

Investing in an estate agency franchise in Belgium

Here’s a summary of the charges you may face when setting up your own estate agency franchise. These launch costs are closely linked to your personal situation, choice of premises, franchisers, etc. In any plan, it's best to be well informed and well prepared. So don't just think about making a cost forecast for your project. You should also plan to regularly reviewing it depending on your progress. Now, all you have to do is take your first step towards becoming an estate agency franchise.