How Can I Set up a Real Estate Franchise?

Real estate is one of the few sectors that has remained on the rise after the crisis caused by the coronavirus.

Surprisingly, the data speaks for itself. For almost a decade, real estate franchises have notably increased their presence in the market.

If the new normality brings a paradigm shift for you and you are thinking about how to set up a real estate franchise , read carefully everything that we are going to tell you about this business model and what are the keys to succeed in buying and selling homes.

What is a real estate franchise?

To know how to set up a real estate franchise , it is convenient, from the outset, to know its peculiarities. Real estate franchises are quite different from franchise models in other industries.

When considering an investment in this sector, there are variables that should be taken into account and, in addition, be very clear about what a real estate franchise is .

A real estate franchise is an agreement between two parties called the franchisor and the franchisee. In this contract, the franchisor assigns to the franchisee the exploitation of the rights of use of its commercial name , business signature or brand, in addition to the market to which it is directed and the activity management systems.


For said “assignment”, the franchisor receives a compensatory canon that covers different characteristics of the real estate franchise.

What do you benefit from hiring a franchise?

Once analyzed what a franchise is , it is convenient to be clear about what benefits us. In this sense, we have 3 fundamental aspects that come into play when setting up a real estate franchise or of any nature.

1. Business name

It is the company brand. The distinctive that differentiates the franchisor and under which coverage is offered. In other words, the franchisee benefits from the fame of said brand and its position in the market to take advantage of it for himself under that commercial umbrella.

2. Know-How

It is the “know-how” of a commercial brand. It is the biggest advantage of joining a franchise . Having the previous experience acquired during a long career, allows you to obtain greater benefits more quickly.

Through a differentiating work system that has been effective, the franchisee obtains better and greater results. He drinks from the previous effort of the other and is seen under his “fame” or positioning.

3. Training and advice

This “know-how” also includes training and advice that allows the franchisee to start in the real estate sector and obtain better and better results.

Through this training, they receive instructions on how to train, how to achieve greater growth, the marketing techniques that should be applied or access to the commercial tools of the brand itself.

A whole compendium of advantages that, without a doubt, will make the road to success much easier.

How to set up a real estate franchise

Real estate franchises are experiencing great success and future prospects seem to point to the best omens.

However, even if it is a perfect time to invest in the real estate sector, it is advisable to assess a series of decisions before jumping headlong into a real estate franchise.

What type of real estate franchise to choose

Each type of franchise has its peculiarities, just as real estate franchises have several types . If you are thinking about how to set up a real estate franchise, you should first think about which one interests you.

From the outset, do not be seduced by cheap real estate franchises without carefully analyzing all the options and characteristics of each one.

Think about whether you want to work in regular homes, luxury homes or if you are interested in offering second homes for nationals or foreigners. You can also specialize in rental housing or in the sale of offices and commercial premises.

Do you want to work on your own?

Being an entrepreneur is not always easy and, of course, not everyone is suitable for the position. But if you are an enterprising, persistent, methodical person and have skills that may be necessary in this sector, undertaking a real estate franchise may be an excellent option for you.

I have decided to set up a real estate franchise. And now that?

If you have already decided that being an entrepreneur in the real estate sector is your path, to know how to set up a real estate franchise you should start by informing yourself.

How much to invest in a real estate franchise

Financial capacity is a fundamental factor. It is not only about how to set up a real estate franchise, but about the ability to invest in it.

Study the different possibilities of financing and prices of the trademark, as well as its royalty . Many of the real estate franchising companies have collaboration agreements to have financing lines with some financial entities or provide payment facilities.

Review the contract with a professional

Don’t drown before you start. In order not to encounter unpleasant surprises when investing in a real estate franchise , it is advisable to contact a specialist lawyer who thoroughly reviews the clauses of the real estate franchise agreement.

Very important aspects will be detailed in the franchise contract, such as:

  • The durationof the contractual relationship (which is usually five years).
  • The requirements that the premiseswhere you will locate your real estate franchise must meet.
  • The initial investmentrequired to open the real estate franchise.
  • The percentage of incomeor fixed royalty that you must pay monthly.
  • The monthly amount corresponding to the investment in advertising campaignsthat the franchisee must pay to the franchisor.

Knowledge of the real estate sector

Although it is not a requirement to have experience in the sector, it is advisable to have knowledge of the real estate market . However, when choosing real estate franchises with a long and recognized track record such as PRIMER GROUP, you have the advantage of having their training school where, even without prior training in this sector, you can start from scratch until you become a great expert.

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