As a real estate professional, you’ve heard about the pros and cons of a real estate franchise. But reading and researching online is only one way to gather your intel. (This includes reading the highly informative Weichert blogs on franchising.) The best way to truly understand the value of a franchise is through real conversations. That’s why we’re here to help you explore franchising as an investment in growth, not just an expense.
We typically end each blog with a link to our contact page. This time, we’re going to start with it because we believe that the only way to really understand if franchising is a smart growth strategy for you is to talk to us.
So, let’s start a conversation about franchising. And when we do, ask us these seven questions. (In fact, ask these same questions to any franchise you’re considering.) There’s no obligation, and we’ll tell you everything you want to know.
1. “How long has the company been around?”
This indicates the company’s stability, track record of success, and ability to adapt to market changes. The longer they’ve been around, the more market fluctuations they’ve seen and survived. This is crucial when considering whether to invest in a franchise. A longer operating history generally suggests greater experience, proven success, and lower risk for you. Weichert, for example, has been franchising since 2001, but has been in the real estate industry for over 50 years. We’re proud of our track record!
2. “What’s the current size of your franchise network?”
This will help you understand the number of franchise locations as well as the locations themselves. Territories in franchise agreements define the operational areas for franchisees, and this clarity is key to success. Clear boundaries prevent conflicts, ensure fair market opportunities, and protect your investment. Think of the franchise network as a family—understanding where your future franchise fits will help you make informed decisions and set yourself up for success.
3. “What kind of support and training do you offer to new franchisees? And what do you offer them over time?”
Ask about the tools, training, and support available to help you operate your business effectively. This is especially important when navigating initial challenges. How will the franchise help me align with brand standards? How can I maximize the tools and templates? What kind of onboarding is available, such as tech training for my agents? And then you’ll want to ask about the support that can benefit you over time, such as coaching and mentoring.
4. “How much control will I maintain over my own business?”
This is a common question for brokers, especially for those who already have an established real estate business. One of the primary motivators for having a franchise is that it allows you to go into business for yourself, but not by yourself. Ask for examples of where your autonomy can shine and where the established brand has your back.
5. “What’s my investment?”
This is typically a top question. Brokers want to wrap their heads around the real estate franchise costs, and rightfully so. Be sure to ask this question with a cost-benefit analysis in mind. Instead of viewing it as just a cost, think of it as an investment. The other half of that, though, is evaluating your return on that investment: tools, technology, support, and resources that can drive growth and offset expenses you’d otherwise pay for separately or perhaps couldn’t afford on your own.
What comes with this investment? What are those items valued at? How can this offset any other spend I may already have? These should be your immediate follow-up questions to those about your investment.
For example, a high-end, high-tech CRM like the BoldTrail platform (formerly known as kvCORE), which is what powers the CRM available to all Weichert franchise owners and their agents, is a top-of-the-line product. As a standalone, you might decide that it’s cost-prohibitive for your business. When it’s baked into the investment of a franchise, it may be another story.
When talking through your investment numbers, be sure to factor in the value of any ready-to-use marketing tools, ongoing training and coaching, and other resources that you might typically pay for a la carte. Take the same approach for yourself with your clients when talking about an HOA fee. While there may be a $300 monthly fee they’re not used to paying, the expenses for snow removal, leaf blowing, and mowing are now gone.
The other part of this equation that goes beyond “the stuff” is the consideration of how many more deals your agent team can pull through with the new resources you’re providing them. How many more agents could you recruit with the enhanced package of tools you’ll be able to offer? Multiply that by the average number of deals those incremental agents might close. Those are all things to factor into the return on your investment.
6. “What’s your growth strategy and plans for the future?”
This indicates the company’s commitment to expansion, which directly impacts your potential for success as a franchisee. A well-defined growth strategy suggests the franchise has a clear vision for market penetration and profitability, allowing you to gauge your own potential to benefit from their future development and market reach. This question syncs up nicely with our first question about the franchise’s history. A franchise that can’t speak to their growth strategy five or 10 years down the line could be a red flag.
7. “How happy are your existing broker-owners?”
There’s nothing more telling than learning directly from the franchise owners. What has their experience been? How long have they had their franchise? Are they successful? Are they happy in their business partnership? When you seek to understand the franchisee experience directly from those who live and breathe it every day, you gain invaluable insight. We’re always thrilled to refer inquiring brokers to our existing franchisees!
So, yes, let’s start a conversation about franchising. We want to help you find the answers you seek. Whether you decide to franchise or not, we’re all in this real estate community together.
