If you are looking to start up your own estate agency, you've probably already heard of the franchise system. You probably already know about the advantages of such a system, including benefits from the brand’s image, experience, etc. You may have seriously thought about joining one or another network. But did you know that the estate agent franchise is not only a low-risk model, but is also the most attractive franchise sector after the food franchise?
Why choose the estate agent sector?
The estate agent franchise is in continuing expansion, making it a very attractive sector that wins on many levels compared to the food industry. Besides the fact that the property sector, unlike food, is a service activity and therefore does not require stock management, its market share for investment is still extremely large. For example, more than half of French people are not homeowners. The sector is not lacking opportunity for those wanting to dive right in, but the property sector is not just a few numbers on a piece of paper. Selling a house to a client is selling a valued property, ultimately a home that will remain in the family for generations and stand the test of time. Another advantage of the estate agent franchise is its low entry costs. There is typically an investment of somewhere between €100,000-150,000 with a personal contribution between €50,000-80,000 to build your business. But what the franchise provides is a high return for your agency. This is its main advantage.
The estate agent franchise: a profitable model
Choosing the estate agent franchise also means choosing a profitable model. The figures confirm this. At the national level, 40% of turnover in the property sector comes from franchised agencies, and, as specialists know, franchised agencies have a much higher turnover than independent ones. Statistics also show that franchise networks are clearly profitable. The Laforêt network, for example, one of the most profitable franchise networks, has a net profit of 20.62%. The Guy Hoquets and Century 21 networks, meanwhile, also show significant average returns of 19.88% and 19.33% respectively. Even with a slightly lower return than Laforêt, an agency with one of these brands has an average turnover of €398,000 for Guy Hoquet and €402,000 for Century 21. Estate agent franchise networks are continually growing and are recruiting more and more new members to create and manage estate agencies under their banner.
What does it take to become a franchisee?
As brands are looking for different types of profiles, a franchisee must generally have certain specific skills to succeed. Firstly, it must of course have a good working knowledge of the market at a legal, financial and technical level, as required by law, but it must also be comfortable in its customer relationship management. A franchisee must feel comfortable in its commercial role, but also as an experienced salesperson juggling between their knowledge of the sector and their customer’s psyche. But the franchisee is not alone in accomplishing its project, for they will also receive assistance from the brand. To make franchisees even more successful, they will adopt certain coaching and training strategies. If a candidate is selected, they will be provided with initial supervision as well as continuous training from the brand. The franchisee benefits from the experience and expertise of its franchisor, who is supportive in all of the franchisee’s projects.
Become a franchisee
As demonstrated above, the franchise is an ideal system for getting into the property industry and becoming an estate agent is the perfect sector for future franchisees. Being a franchisee not only means joining a network where you will be able to benefit from the experience and expertise of a recognised brand, but also a business that guarantees great profitability. If you are looking to set up your own agency, choosing a franchise is a great option. Now, all you have to do now is join a network and start your own project.