Why owning a Real Estate Franchise makes sense – and cents

Owning a real estate franchise offers significant advantages that are not available to stand-alone businesses. It’s the ideal blend of being your own boss while receiving the support of a larger, established brand. This can be incredibly valuable in a highly regulated industry like the real estate market. If you’re considering opening your own real estate business, then keep reading before you decide to tackle it all on your own…

Why do you want to own a franchise?

There are several key advantages to buying a franchise as opposed to starting a business from scratch. This includes instant brand recognition which (among other benefits) can make sourcing financing less difficult as lenders typically perceive the franchise option as lower risk than a start-up. Equally important is the support and training that a franchise business offers, as well as the tools and systems that come with most franchises. When you open a real estate franchise, you gain all these benefits alongside other advantages that apply specifically to this industry, such as the legislative and regulatory requirements associated with practicing as an estate agency.

Why do you want to own a real estate franchise?

Many industries are becoming increasingly regulated — and real estate is no exception. Failure to comply with the relevant rules and regulations as set out by the PPRA and REBOSA could have a deleterious impact on your business. Rather than trying to navigate through this all on your own, being part of a franchise business like RE/MAX will mean that you gain access to a wealth of resources to help you navigate this sometimes-scary terrain.

Furthermore, because property transactions intersect with the finance and legal industries, being part of a broader organisation with access to relevant knowledge and expertise, as well as an instant network, is a no-brainer. Big brands like RE/MAX attract valuable business partnerships with bond originators and attorneys and a host of other related business relationships that can help you succeed in the industry.

What does a day in the life of a real estate franchise owner look like?

Administration and marketing are critical, as is staying up to speed with developments in your industry. In addition, you must manage your team and engage with clients and service providers, including bond originators and conveyancers as well as other suppliers. Often, we underestimate how these meetings eat our time, making it essential to plan carefully and allow time for those unexpected things that crop up.

In a real estate franchise where you are the principal broker who is managing a team of estate agents, these are the activities that typically form part of your average workday:

• Training to ensure that the team stays on top of property trends and any changes to the legislative landscape affecting real estate.
• Team building to ensure that everyone pulls together.
• One-on-one engagement with agents and support staff to continuously build trust. With this comes learning to better understand team members’ personalities, goals, strong points and challenges.
• Marketing your office and managing or overseeing your office’s finances.

Each of these guarantees the financial prosperity of not just the franchise but also of each agent and member of staff.

Personal questions to ask before buying a franchise

We’ve already addressed some of the burning questions that need answering when you are thinking of buying into a franchise, but there are more. Here we focus on those questions that demand a high level of personal knowledge and honesty (with yourself, at least).

Can I work within the franchise’s framework?

In addition to industry compliance and instant brand recognition, a franchise comes with rules and regulations associated with its trademarks, branding and other operational issues. On the plus side, having access to trade secrets and marketing collateral saves you a ton of money, time, and effort compared to what you would have needed if you were to launch a stand-alone real estate agency.

Am I willing to lead a team?

It is your main job to drive the vision and guide the people within your office. If you have a passion for empowering others and enjoy navigating challenges while celebrating successes together, leading a team can be one of the most rewarding aspects of your franchise journey. Ultimately, your commitment to leadership will not only drive your franchise's growth but also contribute to the overall success of your team.

Am I willing to make the time?

While owning a business brings a sense of freedom and control over your future, most people who are self-employed give more time to their businesses than employees do. Even if you have the resources to employ a manager, a bookkeeper, and/or an assistant, you’ll still have overall responsibility for the business. The most successful franchise businesses are often the ones where the owner is actively involved, so it is important to know upfront whether you have the time to invest in the businesses success.

Why choose a RE/MAX franchise

In addition to the RE/MAX brand presence, our franchise fees are among the most competitive in the market — and, because all RE/MAX franchises are independently owned and operated, every franchise owner has the freedom to run their office their own way.

This includes their marketing strategy. Unlike many other brands where you are forced to use the artwork they provide, you have greater flexibility at RE/MAX. While we do provide a host of templates and customisable artwork tools, our franchises are also free to create their own marketing materials — as long as they comply with our trademarks and graphics standards that regulate the use of all RE/MAX logos. This allows our franchisees far more flexibility with their marketing than other franchise businesses offer.

Our franchisees also often say – with confidence and conviction – that they are in business for themselves, not by themselves. Each office is allocated a dedicated Business Development Consultant (BDC) on whom they can call for help whenever they need it.

Are you interested in starting or buying your own RE/MAX franchise? Complete your details and our team will be in touch within 48 hours for an obligation-free conversation.

Have more unanswered questions? Here are some related questions – and answers – that might help…

What is a real estate franchise?

A real estate franchise is essentially, an agreement between a brand owner or parent company, in terms of which, the franchisee – the franchise owner – is granted the right to operate using the brand’s name, logo (trademarks) as well as its systems and processes. Depending on the type of agreement, the franchisor could also offer business and other support to franchisees.

How to start a real estate business in South Africa

In addition to the usual things associated with starting a business, as a minimum, you will need to achieve Principal status to open and manage an estate agency firm in South Africa, meaning that you will need a Principal Fidelity Fund Certificate (FFC) from the Property Practitioners Regulatory Authority (PPRA) and pass your PDE5 exam.