Find the right term for the franchise partnership
When considering the start of a business with the license of an established franchisor, the question often arises as to what period you will initially be working as a franchisee. In terms of a constructive franchise partnership, it is beneficial to be able to assess the motives of the franchisor as well as your own interests in determining the duration of the contract. Below you will find the most important factors at a glance:
As a rule, it is not only important to the franchisor in real estate franchise that, as a franchisee, you enrich the corresponding brand in perspective through adequate appearance and long-term economic success. In order to minimize their own risk, franchise agreements with new partners are usually limited to a few years (on the part of the franchisor). This also brings benefits for you: you can test your new business model and become familiar with the associated lifestyle. If the transaction is carried out to mutual satisfaction, renewals - often also on preferential terms in favor of the franchisee - are not uncommon. However, be especially cautious on short-term entry contracts: the license should last at least until the key business goals defined in your business plan are met.
Efficient market entry with Engel & Völkers
As an independent real estate agent in the Engel & Völkers franchise system, you benefit from our dedicated corporate identity right from the moment you open your real estate shop, which enables you to build a stable, profitable business. Since the foundation of Engel & Völkers in 1977, we have been constantly working to optimize our contractual arrangements. Each of our contracts will be developed in close cooperation with future franchisees and adapted to the requirements of the broker and the respective license area. This way, we collectively determine the appropriate duration of the first contract term, the first building block for a perspective longer-term cooperation.
Get to know the world of real estate franchises with Engel & Völkers and put your ambitions into action as an independent manager of an Engel & Völkers real estate shop. For further information, we are also happy to assist you directly!