Opening a real estate franchise, is it a good idea or not? We often hear this question in 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 modern business.
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 know how to set up a real estate with this system, let’s talk first about the origin of this model in our country.
As you will undoubtedly know the best real estate franchises landed from other countries, such as the United States and Canada.
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 or adhere to the real estate franchise brands present in the market.
In both cases you must meet a series of requirements to set up a real estate:
Autonomous or company, the legal basis of your project
Whether you decide to set up a real estate company 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 quote as a freelancer, you must register in the professional census , in addition to starting to pay the corresponding Social Security fees every month.
If you decide to set up a real estate, the procedures are somewhat more complex, as there are various legal figures, such as corporations or limited companies. If you want to open a real estate franchise, you will have to contrast these requirements with the parent company that will grant you the rights of its brand.
Procedures with the Council of Capital Smart City
There are several additional procedures that you must perform 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 city hall.
The paperwork to be done 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 purchase locally, you must register it in the property registry. Eye that has nothing to do with the registration of intellectual and industrial property, which governs the rights to trademarks and authors.
If you are also going to carry out works in the premises to prepare it, you must request the corresponding works license. And if it is the case that the place where you start your activity has been until recently a real estate, you must notify the municipality of the change of ownership.
Finally, if the place is of recent construction and you are going to start a commercial activity, you must request an operating license. Also at the Town Hall of your town! As you can see, there are many procedures to be carried out in the town hall that corresponds to you.
Procedures related to the real estate franchise if you decide to mount it with a
With the place in order and your paperwork as an entrepreneur ready, the most important part remains, that of the steps to be taken with the company that will assign the rights of its brand so that you operate under it.
Most likely, you have legal advice, not for being well-known brands you should trust any contract. Have a lawyer carefully review each and every one of the contracts and procedures 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 commit in each case.
How does a real estate franchise work?
Despite having revolutionized the world of business, the franchise model dates back to the middle Ages, where hunting or fishing privileges were ceded in certain territories through the so-called “free letters”.
A long time later, the Singer sewing machine arrived. in 1858, this engineer found a good product but with two problems: he did not have enough capital to produce it and needed to teach how to use it before customers bought it.
To solve these two problems, he gave the rights to his 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 transfer the bottling rights to local companies and then signs worldwide distribution contracts.
In addition to Singer and Coca-Cola, the franchise system has been extended to virtually all business sectors, from food to the automobile sector, the oil industry and, of course, the real estate sector.
Do you already know how a real estate franchise works?
If in the end you decide to create your own brand and need help with real estate marketing, with 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.