Best real estate franchises for sale There is no doubt that if you want to start a real estate brokerage in this economy, purchasing a franchise is definitely the route to take. Nine of out ten businesses fail in the first year, even more so over the next five years. However, with a franchise, over 80% of the businesses are successful. Why? Because you will be purchasing a proven system. Unfortunately, in the last few years there has been an onslaught of best real estate franchises for sale companies that are carbon copies of one another. There are numerous companies to evaluate when choosing a brokerage but more importantly there are numerous fees to evaluate as well. You might already have a company in mind. The intent of this article is twofold: 1. To allow you to fully examine a company you already have in mind and reinforce or eliminate this company based on the below criteria. 2. To help you evaluate the numerous companies and decide which best matches your goals. Renewal Term Fees All franchises have renewal terms. Approximately 60% of real estate companies require their franchisees to pay renewal fees to renew these terms. These renewal fees are typically a few thousand dollars and are required every year or every few years. These franchisors claim these fees are for administrative costs, technology fees or other support related costs. This is essentially a junk fee. Do not choose a franchise that charges renewal fees. These fees should be included in the costs that are collected during the normal course of business. Companies that charge renewal fees aren't concerned with their franchisees financial independence. Territory Size Real estate companies make their money by zoning small territories for their franchisees. Zoning by zip code is the most common type of territory to offer. Several franchises only give territories by the mile! Paying a high initial franchise fee and portion of your profits for exclusivity to only one zip code, or one mile, is unacceptable. Avoid any best real estate franchises for sale that offers exclusivity to a territory based on mileage. Additional Branch Fee It goes without saying that when you buy a real estate franchise you will want your franchise to grow. Growth should be to the benefit of the franchisee, not the franchisor. However, many franchisors charge an additional fee for branch offices. If you have plans for owning a small brokerage of 6 or less agents, then this fee won't matter to you. However, if you want a franchise with unlimited potential this fee will have a huge impact on your bottom line. When considering a best real estate franchises for sale, always ask the franchisor about additional fees for branch offices.