Understanding Real Estate Franchises

by | Jun 28, 2018 | Franchise Broker

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When most people think of a franchise, they automatically think of retail stores as well as restaurants. Both of these options can be valuable franchises, but they are not the right match for all potential business owners.

Most of the large real estate services are actually franchises. These real estate franchises include the national names that may also be international, with franchise outlets across Canada, Mexico and throughout Latin America. These same companies may also have franchises throughout Australia, Europe, and Asia, which provides a truly global name for the franchise.

The Benefits

The most obvious benefit of real estate franchises is the ongoing need for real estate services in virtually all locations in the United States as well as throughout the world. As with any type of franchise, it will be essential to understand the local market, the level of competition with existing real estate companies, as well as the overall economy.

In areas where there is positive growth, real estate is always a good investment opportunity. The branding of these franchises is also much easier than some of the smaller franchises, which can provide entry into a market with relative ease.

Consider the Business Model

Unlike most retail or restaurant types of franchise options, the real estate market tends to offer different business models depending on the franchiser. For those buying in, as a real estate broker to a real estate franchises, being in agreement with the business model will be critical.

In general, the franchise controls the use of the brand and other specifics on the business side, but the manager or franchise owner will be able to determine the specific business model used internally. Ensuring that the two models work together and create the opportunity for growth will be an important consideration when choosing the franchise and the brand.

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