Interview: Why opening a franchise Engel & Völkers in Italy?
Since when has Engel & Völkers been a franchise company?
The company was founded in 1977 as an estate agency in Hamburg. Today we are based over 800 location in 34 countries on 4 continents. Engel & Völkers now is one of the world’s leading service companies providing specialist advice and helping you in your search for a new property or the holiday home of your dreams. Whether you are looking for a new build or a portfolio property, in the city or the countryside, or wish to rent or to buy: our international network provides access to the finest properties in Italy and abroad.
What sort of returns can I expect?
A commission of € 750,000.00 per year is reasonable at a long term market share of 10%. The success of our partners is mainly linked to the potential on the franchise area and personal performance. We are happy to discuss this topic more detailed in a personal meeting.
Am I given territorial protection?
Yes. We will establish a franchise area, adjusted to marketing conditions, geographical features and population density within which you are the only franchisee with exclusive rights.
How do you define the franchise area?
We want to treat all our franchise partners equally. When it comes to the franchise areas, we are working very close together with our future partners. We are also looking at the individual preferences of our future partners.
What are the USP's of Engel & Völkers?
- Farming tools
- Structured agent platform
- International Network
- Advanced trainings (Academy)
- Franchise Experience since more than 30 years
Does the Franchise System require previous real estate experience?
No. Our franchise concept is made for start- ups and real estate professionals. The most successful businesses are those with entrepreneurial owner/operators who have excellent people skills. Engel & Völkers has a dedicated training academy that offers a comprehensive variety of courses and gives training to our employees on all levels such as Franchisee, Real Estate Agent and Assistant, teach you our operating systems and guide you through the legislation governing estate agency in your franchising region.
What is the realistic working capital needed?
The amount of working capital will vary according to region, as well as the size and the complexity of the fitting of the shop.
This figure consists of the following components:
- A once-off Franchising Fee (includes, amongst others, the trademark rights, and exclusive rights in the licensed area)
- Complete Shop fitting (depending on the size of the shop)
- Capital for the start-up phase (fixed ongoing costs)
What is the duration of my franchise agreement?
The initial agreement is for 10 years + optional 5 years (no additional cost).
Do I have to pay Engel & Völkers on a monthly base?
No. Our franchise concept is based on royalties. That means, on each net commission the partner pays Engel & Völkers a royalties fee.
What do I get for this royalties fee?
- Operational support (daily business, recruiting etc.)
- Access to all marketing and farming tools (online + offline)
- Access to firm intranet (document database + all information regarding selling process etc.)
- Great agent platform
- Access to an exclusive and worldwide network (Referral business etc.)
- IT service/support
- Advanced training opportunities for all staff members through our company owned academy
- International Network – customer database
What territories are currently available in Italy?
We are more than happy to connect you with our expansion manager who will present to you the available licence areas.
How soon can I open my own Shop?
From the time of signing your agreement, and with the completion of basic training at our academy, our target is to open your Shop within 3 - 6 months.
Will you help me to find the rightshop?
Our experienced shop fitting and architecture team will assist you in finding theright shop and support you comprehensively in building it up according to our company CI.
Will you help me launching my business?
Yes. We will assist and advise you through the process of launching your new business. Based on our experience, you will develop a marketing plan together with your own regional manager. It comes along with specific marketing tools that will be available for you at any time.
How does the further communication process looks like?
- Phone call: first contact – First Information
- Second call: detailed topics – Region of interest
- Meeting – Presentation Franchise Concept
- Second Meeting: Contract topics