Opening a real estate franchise, is it a good idea or not? We frequently hear this question on professional forums and bar talks.
There are great detractors, who claim that it is difficult to get a solvent business with a real estate franchise and there are also many defenders who bet on it as one of the most revolutionary ideas of the modern company.
In today's article, we are going to tell you the requirements to set up a real estate franchise and how a real estate franchise works
The origin of real estate franchises in Spain
To find out how to set up a real estate with this system, let's first talk about the origin of this model in our country.
As you undoubtedly know, the best real estate franchises landed from other countries, such as the United States and Canada.
Some of them, such as the Century 21 Real Estate Franchise, have been in our country since 2010.
Requirements to set up a real estate franchise
There are many entrepreneurs who decide to start a real estate business. The question is whether to create an independent real estate agency or adhere to the real estate franchise brands present on the market.
In both cases you must meet a series of requirements to set up a real estate:
Self-employed or company, the legal bases of your project
Whether you decide to set up a real estate agency with your own brand or if you join a real estate franchise, your business must have all the legal bases required by law.
In this sense, if you decide to contribute as a self-employed person, you must register in the professional census , in addition to starting to pay the corresponding Social Security contributions every month.
If you decide to set up a real estate agency, the procedures are somewhat more complex, since there are various legal figures, such as public limited companies or limited companies. If you want to open a real estate franchise, you must contrast these requirements with the parent company that is going to assign you the rights to its brand.
Procedures with the City Council of your locality
There are several additional procedures that you must complete locally. Not all communities or municipalities require them, so the best thing you can do is go to the district board of your city or the city hall.
The paperwork to be carried out with the City Council is summarized in the following points:
Procedures related to the place where the activity will take place
To set up a real estate, you can rent or buy the property. If you buy locally, you must register it in the property registry . Beware that it has nothing to do with the registration of intellectual and industrial property, which governs the rights to brands and authorship.
If you are also going to carry out works on the premises to condition it, you must apply for the corresponding building license. And if it happens that the place where you start your activity has until recently been a real estate, you must notify the city council of the change of ownership.
Finally, if the premises are recently built and you are going to start a commercial activity, you must apply for an operating license. Also at your local Town Hall! As you can see, there are many procedures to carry out in the municipality that corresponds to you.
Procedures related to the real estate franchise if you decide to set it up with a
With the premises in order and your procedures as an entrepreneur ready, the most important part remains, that of the steps to be taken with the company that will assign the rights to its brand so that you can operate under it.
Sky Marketing is a leading marketing company working on many real estate projects like smart city, smart city Islamabad and development housing societies in Pakistan.
Most likely, you have legal advice, not because they are well-known brands should you trust any contract. Have a lawyer carefully review each and every one of the contracts and procedures that you sign, to be aware of what you are exposed to in each case.
Your ability to maneuver when you belong to a large franchise is quite limited, so it is convenient that you know what you are committed to in each case.
How does a real estate franchise work ?: H istory of franchises
Despite having revolutionized the business world, the franchise model dates back to the Middle Ages, where hunting or fishing privileges were ceded in certain territories through the so-called "franchises".
Much later, the Singer sewing machine arrived. Created by the German Isaac Singer in 1858, this engineer found a good product but with two problems: he did not have enough capital to produce it and he needed to teach how to use it before customers bought it.
To solve these two problems, it ceded the rights to its product, charging for it, and generating substantial profits.
After Singer, many other companies followed this model, such as Coca-Cola, which does not have the production of its soft drinks centralized, but instead cedes bottling rights to local companies and then signs distribution contracts worldwide.
In addition to Singer and Coca-Cola, the franchise system has spread across virtually every business sector, from food to the automotive industry, the oil industry, and of course the real estate industry.
Are you clear about how a real estate franchise works?
If in the end you decide to create your own brand and need help with real estate marketing, advertising or with the creation of the real estate website , get in touch with us, we are a real estate marketing agency with many years of experience.