Top 5 Things to Consider Before Buying a Real Estate Franchise

Published January 10, 2025

Are you considering starting your own business in real estate? A real estate franchise might be the perfect opportunity for you. With the support of a recognized brand and proven business model, a franchise can give you a head start in a competitive market.

More good news: You don’t have to go on this business journey alone. Partnering with New Again Houses gives you access to a top-rated franchise and the resources you need to thrive as a real estate entrepreneur.

What Is a Real Estate Franchise?

A real estate franchise is a business model where individuals (franchisees) purchase the right to operate a real estate business under the branding, system, and guidance of a larger, established company (the franchisor). Essentially, a real estate franchisee runs their own business, but they benefit from the reputation, training, marketing, and operational systems provided by the franchisor. Examples of well-known real estate franchises include brands like RE/MAX, Keller Williams, Century 21, and New Again Houses.

In a real estate franchise, you’ll be selling properties, providing rental services, and managing real estate transactions—all while leveraging the reputation and proven business model of an established brand.

How Real Estate Franchises Work

A real estate franchise operates on a proven model that franchisees adopt and implement in their own local market.

Here’s how the process works.

Franchise Agreement

The franchisee enters into a legal agreement with the franchisor. This agreement includes terms like fees, marketing obligations, training, and the use of the brand name.

Initial Investment

Franchisees make an upfront payment (franchise fee) to access the franchisor’s brand, along with ongoing royalty fees, marketing contributions, and other costs to maintain operations.

Training & Support

Franchisees receive comprehensive training and ongoing support, including marketing resources, technology, and access to a network of professionals in the industry.

Branding

Franchisees use the franchisor’s established branding and reputation to attract clients and sell properties. This process significantly reduces the need for heavy marketing spend to build brand awareness from scratch.

Local Ownership

Franchisees manage day-to-day operations, including recruiting agents, managing listings, and handling local marketing efforts. However, they must adhere to the franchisor’s guidelines and standards.

5 Benefits of Investing in a Real Estate Franchise

There are several compelling reasons to buy a real estate franchise.

1. Brand Recognition

Starting a business can be daunting, especially in a cutthroat market like real estate. With a franchise, you get the benefit of an established brand, which means customers are more likely to trust your services.

2. Proven Business Model

Franchisors have refined their systems and processes over time, making it easier for new franchisees to replicate their success. The operational blueprint is already in place, reducing the risk for franchisees.

3. Ongoing Support

One of the major advantages of purchasing a franchise is the training and ongoing support provided. Franchisors offer in-depth training, access to technology, marketing resources, and mentorship.

4. Marketing Support

Marketing assistance will help you reach more clients with less effort and spend. Some franchises have franchisees take part in a brand fund and then help run national or regional

marketing campaigns to generate leads for you. Other franchises are focused on local markets and provide tailored marketing support like helping franchisees create a marketing strategy and collateral, connect with the right vendors, and implement marketing designed for communities.

5. Access to Resources

Real estate franchises typically have access to cutting-edge technology, databases, and real estate tools that might be out of reach for independent brokers or agents

Services Offered by Real Estate Franchises

Real estate franchises often provide a wide range of services, including the following:

Each franchisor may offer slightly different services, but these are the core offerings that most real estate franchises provide.

5 Things to Consider Before Buying a Real Estate Franchise

Before jumping into a real estate franchise, it’s important to weigh several factors to ensure you make an informed decision. Here are a few things to consider.

1. Initial Investment & Ongoing Costs

Understand the initial franchise fee and ongoing royalty fees. For example, New Again Houses offers an affordable franchise opportunity, but the costs may vary based on your location and the scale of your operation.

2. Market Demand

Research the real estate market in your area. Is there enough demand for properties? Are there underserved niches like renovation-focused real estate, such as what New Again Houses specializes in?

3. Training & Support

Look into the training and support provided by the franchisor. New Again Houses, for instance, provides extensive training on how to find and flip homes and how to build a sustainable business model from day one.

4. Your Goals & Expertise

Make sure your skills and goals align with the services offered by the franchise. If you’re passionate about property renovations and home flipping, a franchise like New Again Houses could be a perfect match.

5. Franchise Reputation & Success

Research the reputation and success rate of the franchise you’re considering. A well-established brand with a proven track record like New Again Houses is likely to offer more opportunities for success than one that’s still finding its footing.

How to Invest in a Real Estate Franchise: 5 Steps to Follow

Buying a real estate franchise involves several steps.

Step 1: Research Franchisors

Start by researching different real estate franchises and their offerings. Compare fees, training, support, and services.

Step 2: Reach Out

Contact the franchisors you’re interested in to gather more information. Request a franchise disclosure document (FDD), which will outline important details such as financials, fees, and obligations.

Step 3: Assess Financials

Evaluate the costs involved, including the franchise fee, initial investment, and recurring fees. You’ll also need to ensure you have the financing necessary to cover the costs.

Step 4: Sign the Agreement

Once you’ve chosen a franchise, you’ll sign the franchise agreement and begin your training and preparations to open your business.

Step 5: Launch Your Franchise

After receiving training, you can officially open your real estate franchise, leveraging the franchisor’s brand and resources to start building your client base.

Why Join the New Again Houses Franchise?

New Again Houses offers a unique franchise opportunity for entrepreneurs looking to break into the world of real estate investment and property renovation. By joining the New Again Houses franchise, you’ll have access to a variety of benefits:

If you’re passionate about real estate and renovation, New Again Houses can help you tap into the lucrative world of franchising with a proven business model.

Your Franchise Questions, Answered

What Is a Franchise in Real Estate?

A franchise in real estate allows individuals to open and operate a real estate business under the branding, system, and guidelines of an established company.

What Is the Definition of a Real Estate Franchise?

A real estate franchise is a business opportunity where a franchisee operates a real estate business using the franchisor’s brand, systems, and training in exchange for franchise fees and royalty payments.

How Do Real Estate Franchises Make Money?

Franchisees typically make money by earning commissions on real estate transactions, property sales, and management fees. Alternatively, they may share a percentage of their earnings with the franchisor as part of their royalty payments.

What Is the Difference Between an Agent and a Franchise?

An agent works independently or under a brokerage, while a franchisee runs their own business under the name and system of an established franchise brand. A franchise offers more support, brand recognition, and a proven business model.

How Much Do Real Estate Franchise Owners Make?

Earnings can vary widely based on location, the size of the franchise, and market conditions. On average, real estate franchise owners can earn six-figure incomes, but success depends on business management, marketing, and sales skills.

Can a Franchise Make You a Millionaire?

While owning a franchise can be lucrative, becoming a millionaire typically requires years of hard work, dedication, and smart financial management. Many successful franchisees build wealth through reinvestment and scaling their operations.

Who Owns the Property in a Franchise?

In a real estate franchise, the franchisee typically owns the properties they sell or manage. However, they operate under the franchisor’s brand and system, which provides the structure and support to succeed.

What Do You Need to Know Before Buying a Franchise?

Before buying a franchise, you should understand the franchise fees, ongoing costs, training provided, your target market, and the franchisor’s reputation. Make sure your skills and goals align with the franchise’s offerings.

Join the Best Real State Franchise: New Again Houses

By understanding the ins and outs of real estate franchises, you can make an informed decision about whether it’s the right path for your entrepreneurial aspirations. And with the right choice—like New Again Houses—you can enjoy long-term success in this thriving industry.

At New Again Houses (NAH), we provide you with the tools and support you need to succeed. Our unique franchise model equips franchise owners with proprietary software and innovative technology that streamlines the entire process—from property acquisition to renovation management—enabling you to make informed decisions quickly and efficiently.

We also offer comprehensive training programs that cover every aspect of real estate. Whether you’re a seasoned investor or new franchisee, our training will help you build the necessary skills and knowledge to embark on your real estate journey. With ongoing support and a strong community of fellow franchisees, you'll have the resources to tackle challenges head-on and maximize your profitability.

Take the first step toward transforming your passion for real estate into a successful business by partnering with New Again Houses. Schedule a call today to learn more.