In the dynamic world of real estate, opening a franchise represents an unrivalled opportunity for ambitious real estate agents.
The success of this agency model is undeniable, with significant growth in the number of franchisees over the last decade.
Opting for a franchise offers the promise of a “turnkey” start-up, backed by a proven concept and tailored support.
However, this strategic choice requires a thorough understanding of the steps involved, the essential prerequisites, and the mutual obligations between franchisor and franchisee.
How do you successfully open a branch, from selecting a network to determining the necessary budget?
How do I open a real estate franchise?
Many real estate professionals aspire to set up a franchised agency.
The growing popularity of this business model is undeniable, with the number of franchisees and franchising networks doubling over the last decade.
This approach offers a practical and secure solution, enabling the start-up of a “turnkey” business with a proven concept and tailored support.
The agent can choose between working as a real estate agent from home, without premises, or opening an agency with a physical location.
But how do you go about it, and what conditions must you meet?
Working as a real estate agent and setting up a real estate agency
As the real estate agent profession is regulated, it is essential to hold a professional license. There are several ways to obtain this card, ranging from specific diplomas to significant experience in the real estate field. Professional liability insurance is also mandatory. The professional’s character is assessed, excluding any recent convictions for crimes or certain offenses. Opening an escrow account is mandatory, and franchising offers the possibility of independence or joining a real estate network, with a preference for commercial profiles.
What steps do you need to anticipate?
Opening a real estate franchise involves carrying out a market study, choosing the location and premises, selecting the franchise network, deciding on the agency’s legal status, and completing the administrative formalities. A financial guarantee is required for those handling funds, and its amount varies according to years of practice in the real estate business.
What legal form should you choose for your project?
The choice of legal form depends on the amount of investment, the desire to form a partnership, and the personal situation of the entrepreneur.
Commercial companies such as SARLs, SASs and SAs are generally the preferred form of franchise.
However, the decision must be carefully considered in the light of the specific needs of each real estate project.
What are the mutual obligations of franchisor and franchisee?
Franchisor and franchisee have reciprocal obligations.
The franchisor must provide a pre-contractual information document, transmit distinctive signs and know-how, and provide ongoing assistance.
The franchisee undertakes to pay entry fees and royalties, to respect the know-how and brand image of the real estate franchisor, and to comply with the terms of the license, particularly with regard to non-competition after the end of the contract.
What’s the best real estate franchise?
Choosing the best real estate franchise depends on your objectives, geographical area and specific expectations.
Each real estate network has its own advantages and disadvantages.
A thorough analysis, possibly with the help of experts, is necessary to choose the franchise that best meets individual needs.
- With its entrepreneurial philosophy, Laforêt welcomes a variety of profiles to become franchisees. Steps to joining this successful network include submitting an application, a 9-week training course, setting up the agency, and finally, the official opening.
- With a network of 1,300 agencies, 7,000 employees and a portfolio of 60,000 properties, ORPI stands out for its scale.
To open an ORPI agency, location becomes the key to success, favoring premises between 50 and 70 m² in the city center.
The discovery of strategic commercial premises, on the corner of two busy streets, adds valuable points.
- Before opening a Guy Hoquet Immobilier franchise, 11 weeks of multi-disciplinary training are required, making you an expert in property transactions and rental management.
This network is expanding its opportunities in mainland France, overseas France, Morocco, Madagascar and beyond.
- Operating in all real estate sectors, Century 21 offers three ways to become a franchisee: affiliate your existing agency, create a subsidiary, or take over an already-affiliated business.
The steps involved vary according to the choice made.
- Rapidly expanding with 660 locations, the Stéphane Plaza network is attracting many real estate agents and entrepreneurs.
Accessible via a simple online form, this franchise network offers in-house training and theatrical sessions for adopting the “Plaza style”.
How does a real estate franchise work?
The operation of a real estate franchise is based on collaboration between the franchisor and the franchisee.
The franchisor provides the concept, distinctive signs, know-how and ongoing support.
In return, the franchisee complies with the terms of the contract, pays entry fees and royalties, and benefits from the assistance of the real estate franchisor.
Franchising does not necessarily require prior experience in the real estate sector.
The essential qualities needed to become a franchisee are a commercial temperament, excellent interpersonal skills and an inclination for customer service.
Which real estate franchise is the most profitable?
The profitability of a real estate franchise depends on a number of factors, including location and overall investment.
Accurate financial projections, provided by the franchisor, are essential to assess the agency’s potential profitability.
It is advisable to take into account the specific features of the local real estate market, and to opt for a franchise offering suitable structures, attractive programs and effective marketing strategies.
How much money do you need to open a real estate franchise?
The budget required to open a real estate franchise varies according to the network chosen.
On average, a personal contribution of €30,000 to €40,000 is required, with an overall investment of between €100,000 and €150,000.
This amount covers all the costs involved in launching the business, as well as the fees payable to the franchisor to join his real estate network.
Monthly expenses must also be taken into account.
However, estimated sales from the very first year offset these investments, making the opening of a real estate franchise an attractive financial project.
