Benefits of Owning a Real Estate Franchise Rather than Starting Your Own Business

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Are you working hard towards opening your own real estate business? Yearning to tap into your entrepreneurial spirit but don’t know where to begin? When it comes to starting up your real estate business, there are two major avenues that you can go down.

The greatest landmark decision you may face is whether to open up your own independent real estate business or follow in the footsteps of a trusted franchise. To tackle this problem, it’s best to understand the ins and outs of independent and franchise options.


In this article, some points of note for independent vs franchise decision making are covered. Continue reading for a breakdown of the advantages and disadvantages of each pathway and what best suits your situation and preferences.

Is owning a franchise my number-one option?

Owning a real estate franchise holds several advantages compared to starting up an independent business from scratch. 

It’s important to understand all the major benefits of investing in a real estate franchise. When it comes to positive brand awareness, access to tested processes and the availability of support systems, franchises are unrivalled. 

Take a look at the key points to consider.


Benefit from recognisable and trusted branding

Launch your business with the security of distinguished, reliable branding by investing in a franchise. 

Real estate franchise businesses have already done the heavy lifting when it comes to advertising, so you can put all of your energy into building your office. With extensive advertising and developing a trusted brand name already out of the way, franchisees can enter the market with a competitive advantage. You’ll have access to turnkey systems for creating marketing material to ensure you’re making the best use of your time. Think property signboard templates, property flyers, newspaper ad templates or even social media posts.


Access cutting edge technology

Source advanced training, tools and resources from your franchise company to elevate your business right from the get-go. With the guidance of your franchise, you can cut through the white noise of overwhelming endless tech solutions. You won’t have to trawl through research or potentially sign up for unnecessary options. Instead, have ready-to-use tested solutions at your fingertips.

RE/MAX franchisees can rest assured that they will be supported through the processes of prospecting, recruitment and advertising property. They are also equipped with established website templates, marketing platforms, lead generation tools and access to an array of companies partnered with the brand to provide forward-thinking and dynamic business efficiency tools.


Limit risk exposure

While starting up an independent business from scratch can be exciting, it can also lead to significant lost time due to trial and error.

By owning a franchise, you can jump right into business using a proven model and efficient processes. This will make business practices much easier to implement right from the start.

Although the start-up costs of a franchise can vary from that of an independent business, there is much time and money to be saved by utilising a tried and tested model.


Enjoy an entrepreneurial culture with personalised support

At the heart of owning a real estate franchise is the opportunity to embrace your entrepreneurial spirit. Revel in running your business on your terms with franchise backing every step of the way.

While on your business journey, you can seek out personalised support from your franchise organisation. This offers peace of mind that you are being looked after by specialist consultants, professional development resources, marketing tools and manuals to build a profitable business. The collaborative community of other business owners should not be underestimated and will be a tremendous resource for you on strategic decisions in the future.


What to consider when establishing an independent business

When starting a real estate business, the second major avenue is an independent real estate agency. This business model holds various benefits and risks compared to opening a franchise.

To discover what’s right for your investment, it’s important to look at branding control, assuming increased risks and responsibilities and access to support systems. 


 Full flexibility and creative control

One of the main appeals of being an independent business owner is exercising total control over your business model and branding decisions. If complete responsibility is the most important factor for you, an independent agency might be your best option.

Under this model, there is more scope for flexibility and personal autonomy. Branding, naming, business processes and choosing tools and technology is entirely up to you.

Because of these factors, independent business owners are entirely responsible for setting up successful business activities.


increased responsibility and risks to consider

In the case of opening an independent real estate company, higher responsibilities can result in greater personal and financial risks.

Without the support and resources of a franchise organisation, independent business owners may experience a greater sense of liability. As customers tend to trust an established brand, independents usually have to undergo extra groundwork to build their network of clients. 

While starting from the ground up, independent owners are liable for establishing their business in a competitive market, creating successful business processes and securing an effective marketing strategy. To develop a strategy, independent owners must engage with a third-party specialist to form industry-specific solutions. This means negotiation, time spent establishing processes and continual revision to stay relevant.

Lost Business

Lost business is the most underestimated factor when considering an independent agency. 

When establishing a business, your core focus is dedicated to the setup process. Many find themselves developing processes and collateral from scratch rather than focusing on current and future listings – which is your primary source of income. This means that there is a lack of time invested in actually generating the revenue required to run your business. 

Some people feel like the fees associated with being with a franchise are an unnecessary expense however, it could be argued that the inefficiencies, wastage and potential loss of business equal out the ongoing costs.

When thinking about your decision making process on the cost front, you absolutely need to account for the three factors mentioned above: inefficiencies, wastage and potential loss of business.


the industry is changing quickly. What does that mean for your decision?

The fast-paced nature of the real estate industry means that new developments are constantly impacting the effectiveness of business models. A recent survey at the RMAOpen suggested that 61% of Australian agents believed that real estate franchise models need to evolve to survive. 

What does that mean for you? If you’re looking to reap the benefits of owning your own franchise, you’ll want to be sure that your franchise network is at the forefront of market innovations and technology. 

While many business owners choose the independent route for flexibility and autonomy, you may be surprised by the flexibility that franchising offers. Always research the values of your prospective franchise and feel confident that you’re putting your best foot forward. By teaming up with a franchise that values innovation and flexibility, you can become a leader in the market and take advantage of the newest technologies.


Weighing up the pros and cons of franchises and independent real estate businesses

Franchise owners pay a fee so that they can operate alongside the guidance of a trusted organisation and within a community of other business owners. Whilst independent owners won’t pay any ongoing franchise fees they will generally have to work autonomously with less accessible support resources. 

Additionally, the upfront marketing and consultancy costs of starting an independent agency can often exceed those faced by a franchise. However, franchise owners are liable to pay ongoing fees to their franchise organisation. 

The most profitable model for you will depend on a variety of factors. By assessing your options in-depth, you can feel secure that you’ve made the right decision by you and your team.

This decision is not just about costs and expenses it’s also about the type of business you want to run.

RE/MAX will be putting out more blog posts in the future to help guide you on some of these other factors.


1. Rate My Agent, 2021. Real Estate Franchising – Where to from here?. Rate My Agent. Available at: <> [Accessed 28 June 2021].


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