A franchise partnership between licensor and independent entrepreneur usually begins with the opening of a single location, which is embedded in the previously defined license area. Here the franchisee enjoys the exclusive rights of use of the franchise brand and benefits from increased awareness, high reputation and central marketing services of the partner network. The real estate agent franchise at Engel & Völkers impressively demonstrates how productive networking and effective licensing ensure successful start-ups worldwide. On this basis, if a franchise company's performance continues to be high, it can prove sensible to develop an expansion strategy as a franchisee in order not to let the economic potential, that the opening of further locations open up, untapped. There are various options available to you: In this article by Engel & Völkers, your franchisor for successful real estate agents, you will find out what this means for you and what goals can be achieved with the different types of expansion.
Requirements for the expansion of licensed franchise companies
Before franchisees can obtain brand-based expansions from their licensor, you have to meet a number of conditions. Franchisors are keen that their brand is represented by partners who are conducive to the reputation of the entire network. If a franchisor is to represent the brand at multiple locations in the future, it is often checked beforehand whether it meets the previously defined expansion criteria. This includes, for example, the seamless integration of the business concept envisaged by the franchisor in the original company - it is expected that future locations will meet the central requirements in order to ensure a franchise network that is as homogeneous as possible across the region. Other audit aspects include the fulfillment of all obligations set out in the franchise contract and high customer and employee satisfaction in the first franchise operation. Which criteria are relevant to expansion for the respective franchisor is usually anchored in the franchise contract or a document that can be viewed separately. If you would like to become Engel & Völkers real estate agents, we will of course inform you in advance about all applicable conditions and our expansion criteria.