Real Estate Franchises: Which system suits your needs best?

Several independent brokers today have chosen to affiliate with the various franchise offerings. Many independent businesses join franchises for many different reasons, but the most common is that they want to increase their brand recognition. The same is true of franchising, in any field. Subway’s sandwich franchise is successful for a number of reasons. Does a franchise teach you how to prepare a turkey sandwich if you are opening your own shop? Not at all. If you purchase a Subway franchising, you own the trademarked Subway name. To do so you must pay both a franchise and royalty fee. As a result, the brand name is known to everyone and they know what you can expect at a franchised store. Visit our website and learn more about weichert franchise.

Franchises in real estate give independent brokers greater power on the market. It is important to remember that this is a services-oriented industry and success in the office is determined by the manager. The success of a real-estate office is not determined by the product it offers, but rather its quality management and sales organisation. In any given area, there are a number of top-notch independent offices.

Many traditional franchises today require very expensive start-up fees, such as initial franchise costs that range anywhere from $10,000 to $250,000. Up to $25,000 Franchises can require up to $200,000. On top of this, you can expect to be charged an average 8% royalties for sales.

The traditional franchise system will perform audits on their franchisees to make sure that these fees are being paid. No franchise system will guarantee the success of any franchise member.

New, non-traditional and innovative franchises may be the next big thing. The real estate industry is maturing, and so are the agents. Today’s average agent/broker is over 50 and many are highly experienced. They do not require beginner training. The industry has changed dramatically and new software is being created that offers “no frills” solutions at a much lower cost.

Internet will be the primary research tool used by consumers to find products and services. The Real Estate Office owner will find it difficult to obtain a protected trademark due to the rejection of thousands of other business names. If the owner of a business does not have a large budget and is unable to coin an “invented” name such as “Google” of “Yahoo”, a cheap real estate franchise may be the answer.