Final Considerations to Make Before Buying a Real Estate Franchise
There are plenty of real estate franchise opportunities out there, but not all of them are created equal. It’s important to do your research to figure out which franchise opportunity is best for you, both today and in the future.
Why are you buying a real estate franchise?
If you’re reading this, you’ve already decided to invest in a real estate franchise. There are many good reasons for starting a real estate business. Depending on what type of real estate franchise you buy:
You don’t need an office
A real estate business can generate a steady income
You’ll benefit from value appreciation in the long term
It has the potential to deliver an amazing ROI
You don’t need any previous industry experience
Select the right real estate franchise, and you could benefit from franchise advantages such as:
A tried and tested business model
A recognized brand name that customers trust
Training and support that other business owners don’t receive
Lower overheads that flow through to the bottom line
You’ve done your research. You know that a real estate business will help you to achieve your personal and professional goals.
Sounds like you’re ready to pull the trigger and dive in. Woah! Hold on!
Before you sign a franchise agreement, you’ll need to make certain you are selecting the best franchise for you. It’s time to make those final checks. Remember, as they say, “The devil is in the detail.”
5 Final Questions to Ask Before Signing a Franchise Agreement
A little hesitancy is not a bad thing. Give yourself breathing space and make those last calculations. Before you commit, you’ll want to ensure that this franchise opportunity is the best for you. Here are five final questions to ask.
Am I within my budget?
You will have set a budget, and have access to sources of funding to buy the real estate franchise. Go over the numbers again. Make sure you’re not breaking your budget. Ensure that you have considered initial and total investment and all franchise fees and royalties, as well as allowing for a contingency. Good financial planning is essential to business success.
Will I get the training I need?
Some franchisors offer intensive training for their franchisees and others do not. Some franchisors offer just a few hours of training and others offer many more hours. Think about the training you’ll need. Be honest with yourself and list your strengths and weaknesses. Now compare this list to the training the franchisor offers. Does it match what you require? If it doesn’t, could you source the training externally ─ and if so, how much would this cost?
Does the company offer lead generation support?
One of the hardest things as a new business is to get customers. The greater the level of support you receive from the franchisor to market your company and provide qualified leads to you, the more chance you have of being successful.
Does the brand have a good reputation?
The reputation of a company is one of the most important factors in determining whether a customer will do business with them. A company that has a good reputation will be more likely to get repeat customers and new customers than one with a bad reputation.
A company’s reputation is the sum of all that people think about it. The company’s reputation is not just a perception, but rather a reality based on what customers and competitors think about the company’s products, services, and employees.
Ways to confirm brand reputation include reading reviews and feedback from customers on social media sites, forums, blogs, and other websites.
Are existing franchisees happy and successful?
Finally, do make sure that you speak with a few of the company’s existing franchisees. Ask them about their experiences, and pay close attention to their frustrations. You’ll want to learn about the culture of the company, how the franchisor treats their franchisees, and if they stay true to their word. For example, is the franchisor open and honest, and approachable?
So, which is the best real estate franchise to buy?
An impossible question to answer, without knowing you!
There are so many variables and so many real estate franchise opportunities, and you are unique. This is why it’s vital to have an experienced franchise consultant on your side. Someone who will ensure that the franchise you select not only meets all your criteria but also answers those last crucial questions positively.
Where do you start on your road to identifying a real estate franchise that will give you the greatest opportunity to maximize profitability in this lucrative marketplace?
Either take a franchisee assessment or if you prefer, book a free consultation to discuss your business goals and franchising objectives.