If you want to jump on the real estate industry bandwagon without starting from scratch, a real estate franchise might just be the ticket: you get brand recognition, a tried-and-tested business model, proven business model, and support systems that help you operate like an established real estate brokerage faster.
Below is a practical, step-by-step guide to checking out real estate franchise opportunities, getting a handle on those upfront costs, and equipping yourself with the right tools. This can help you confidently go head-to-head in your local real estate market.
What's the Deal with Real Estate Franchises?
A real estate franchise is basically a business model that lets you cash in on the reputation of a household name (the franchisor). As the franchise owner (franchisee) you’ll get the works – training, marketing support, a fancy tech platform, and all the systems and processes to get you off the ground.
Of course, you’ll also be paying franchise fees – the initial (and that’s upfront, not on your credit card over time) plus an ongoing hassle.
Franchises are often touted as a way to skip the trial-and-error years because the systems and playbooks have already been put to the test in multiple locations.
9 Steps to Start a Real Estate Franchise
Step 1: Decide Which Type of “Real Estate Franchise” You’re Starting
In real estate, “franchise” can mean more than a traditional brokerage. A helpful way to categorize options is:
- Brokerage franchises (traditional real estate brokerage operations)
- Dealership-style franchises (real estate services-related businesses—often specialized models)
This matters because your initial investment, team structure, and revenue streams (commissions vs services) will look very different.
Step 2: Validate Your Local Real Estate Market
Before you invest, get hyper-specific about your proposed location. The real estate market is local by nature—pricing, inventory, and buyer demand can vary massively by city or even neighborhood.
At minimum, review:
- transaction volume trends (property sales)
- housing supply and days on market
- local demographics (families, retirees, renters)
- competitor density (independent brokerage vs other real estate franchises)
Why this matters in 2026: the National Association of REALTORS® has forecast existing-home sales could rise ~14% in 2026 (a potential tailwind), but local conditions still decide your day-to-day reality.
Step 3: Understand Real Estate Franchise Costs (Upfront + Ongoing)
Initial franchise fee
Across franchising, franchise fees commonly fall in the $10,000–$50,000 range, depending on the brand and category.
Small Business Trends
In real estate specifically, you’ll see everything from low-fee models to higher-fee, higher-support brands.
Total initial investment
Total investment can range widely because it can include:
- office space (or a virtual/shared setup)
- furniture, equipment, signage
- software (CRM, transaction management, reporting)
- hiring/recruiting and launch marketing
Example of that range inside real estate franchising:
- NextHome lists an initial investment as low as $15,250 with a franchise fee range $4,250–$8,500.
- Epcon Communities (a homebuilding-focused franchise model) can require multi-million dollar investment depending on land/lot approach and project size.
Ongoing royalties + renewal fees
Many franchises charge ongoing royalty fees as a percentage of revenue; a 5%–6% structure is common in franchising examples.
Also plan for:
- renewal fees
- long-term commitments: franchise agreements commonly run 5 to 20 years.
Step 4: Shortlist Franchise Opportunities (and Compare the Real Numbers)
Don’t choose a franchise just because the logo looks strong. Compare what you’re actually getting—recruiting help, marketing assets, tech tools, coaching frequency, and the real unit economics.
Here are a few examples of publicly listed ranges (use as a baseline, then verify in the Franchise Disclosure Document/FDD):
- Coldwell Banker: franchise fee often listed at $25,000; total investment around $31,175–$491,875; royalty sometimes shown near 5.5%.
- Weichert: total investment published at $62,500–$326,200, including $25,000 paid to the franchisor.
- Sotheby’s International Realty: franchise fee $25,000; total investment $40,650–$315,500; royalty often listed around 6%.
- NextHome: total investment $15,250–$214,095; franchise fee $4,250–$8,500.
Step 5: Go Through the Discovery Process (Don’t Skip This Part)
A solid discovery process should include:
- Intro calls + territory discussion
- Validation calls with current franchisees
- Tech demo (CRM, transaction management, recruiting tools)
- A realistic breakdown of commission splits and operating costs
When you talk to existing franchisees, ask about:
- How good the marketing support really is
- Whether there’s any lead flow (and how consistent it is)
- The difference between company-owned vs franchised locations (support can vary a lot)
Step 6: Read the Franchise Disclosure Document (FDD)—Especially Item 19
Think of the FDD as the “fine print” that actually matters. This is where you’ll see the real nuts and bolts: all the fees, what you’re required to do (and not do), approved vendors, territory rules, and what support you’re truly getting—not just what’s promised in a sales call.
Spend extra time on Item 19. This is the section where franchisors may share financial performance representations—basically, numbers that can help you understand what revenue or earnings might look like. Not every brand includes Item 19 data, but when they do, it’s one of the most useful parts of the whole document.
If you’re weighing franchising vs. starting an independent brokerage, Item 19 (plus the fee sections) is usually where things get clear fast—because you can see what you’re paying for and what you can realistically expect.
Step 7: Line Up Financing Options
One upside of buying a franchise is that lenders often understand the model. With established systems and a documented playbook, it can be easier to present a lender-ready plan—especially if the brand has a track record.
That said, approval still comes down to your credit, liquidity, and how strong your local plan is.
If you’re going after financing, be ready to show:
- Your market analysis (who you’ll serve and why your area makes sense)
- A 12–24 month cashflow plan (including conservative assumptions)
- A hiring plan (agents + admin support)
- A marketing plan (digital + local launch strategy)
Step 8: Build Your Brokerage Engine (People + Tech + Marketing)
To compete in 2026, your real estate brokerage needs more than a sign and a website.
Recruiting and retaining real estate agents
Many franchises provide recruiting templates, onboarding guides, and agent-facing marketing materials—use them, but localize the pitch for your market.
Digital marketing that actually converts
Your plan should include:
- local SEO pages (city/area pages)
- listing and buyer lead funnels
- email/SMS nurture sequences
- paid search + retargeting
Technology as a profit driver
Franchise operators are increasingly investing in tech to drive efficiency and offset costs, including marketing and training; industry research has also highlighted growing use of AI for forecasting and more personalized marketing.
At minimum, prioritize an integrated stack:
- CRM
- transaction management
- reporting dashboards
- automation for follow-ups and recruiting
Step 9: Add Services Related Revenue Streams (Beyond Property Sales)
Yes, commissions matter—but many operators improve stability by adding services related to income, such as:
- Property management (monthly recurring revenue)
- Partnerships for mortgage financing and referrals
- Home inspection coordination (inspection is a core risk-management step in home buying)
- Referrals 4 Agents
- Fast-sale / home buying models and “sell quickly” positioning (home liquidation-style offers)
Key Questions to Ask Before You Sign a Franchise Agreement
- What are the total upfront costs (not just the franchise fee)?
- What ongoing fees will I pay (royalties, marketing fund, tech fees)?
- What’s included in marketing support (materials + execution help)?
- What tools do real estate professionals actually use day-to-day?
- Is the territory protected?
- How does the franchisor help recruit successful agents?
- What does renewal look like at year 5 / 10 / 20?
FAQs
It all starts with matching your personal business dreams to the harsh realities of your local market -your local demographics and the competition you’re up against.
You wouldn’t buy a car expecting to drive it through the desert if it was only meant to do well on the highway – the same goes for choosing a real estate franchise. What works in one area may leave you in the dust back home.
Before you part with a penny, be 100% sure that this is the business for you. Don’t just compare it to other options – really consider if it’s the best fit for your lifestyle, your wallet and your business goals. Is there a different way you could be running your own thing that might be better for you?
Real estate franchises are primarily about helping you buy, sell or rent property. Although the specifics can vary from brand to brand, you can often expect to find residential or commercial brokerage services, rental help, and client support through all parts of the transaction process.
In 2026, any real estate franchise worth its salt needs to be using tech that genuinely helps you make money – not just tech for tech’s sake. So, a strong franchise should be providing (or at the very least, being integrated with) an all-in-one stack that includes a CRM, transaction management, and some nice AI marketing tools so you can get more leads, follow up faster, and close more deals.
Your franchisor will give you access to the resources you need to get the job done – think marketing, tech, ongoing support – pretty much everything you need to make your business run smoothly and grow over time. That may include training, marketing materials, systems, coaching, tools and the like to help you run the business like a pro.
The Bottom Line
A real estate franchise opportunity can be a smart way to start or scale your own brokerage with a proven system—especially if you want solid structure, built-in support, and instant brand recognition instead of building everything from scratch.
Before you commit, make sure you:
- Validate your local real estate market
- Budget for the full investment (including long-term fees)
- Review the FDD, especially Item 19
And if you want guidance, a franchise expert can help you make sense of the options. Talk to a franchise consultant to explore franchised real estate companies and find the best fit for your goals.
