Going into business for yourself and being your own boss is exciting. But there can be so many options to choose from and so many questions to answer. You have a background in real estate, so that’s a natural starting point. From there, you just need to decide which aspect of real estate is the best fit for you. Whether it’s owning, managing, or investing in property, we’ve got the best franchise ideas laid out here for you. Let’s take a look at the details for the top five business franchise opportunities for real estate professionals.
Best Real Estate Industry Franchise Opportunities
#5. Storage Authority
Storage Authority claims to be the “first and only storage franchise in the nation.” It’s a competitive market with most storage facilities owned by small business professionals. However, more and more Real Estate Investment Trusts (REITs) are now infringing. In the face of changing industry dynamics, a franchise can provide the edge you need to succeed.
Storage Authority provides franchisees with training, business support, marketing, and proprietary business operations software. While they can connect franchisees with lenders who serve this market, the startup costs are, at minimum, usually around a whopping $400,000, currently. That’s because most franchisees will need to build from scratch, which requires hiring a contractor, overseeing the project, and then going through an approval process with the franchisor.
When everything is up and running, you can currently expect to pay 6% in royalty fees and 2.5% in advertising fees. Beware that your profits are limited. Once your storage units are full, your pockets have to be, too.
That said, if you have the know-how to choose a good location, business operations are relatively straightforward and this is definitely an up-and-coming market.
#4. Red Roof Inn
Red Roof Inn is an “upscale economy” hotel chain that grew 41% between 2012 and 2015. The company boasts of having one of the highest revenues per available room (RevPARs) in their market segment. Franchisees benefit from broad brand awareness and customer outreach through the franchiser website, third party sites, and B2B relationship-building. They offer a management training program and other ongoing educational opportunities.
That said, building or converting a hotel is costly, especially as Red Roof Inn requires you to implement specific design elements that are in line with the expanding brand image. In addition, you will pay a monthly fee for their performance metric analysis and forecasting based on data from their proprietary system. Underperforming franchises get “assigned” support service—and pay for it, too.
If you are interested in being a hotelier, you already know that it’s a complex operation. But franchising with Red Roof Inn currently offers one of the lowest entry costs in this market.
#3. KOA Campground
KOA Campground is a household name amongst families who like to camp. And the population of campers is increasing. According to a study by KOA, 61% of U.S. households are active campers, which is up three percentage points since just 2014—and Millennials are driving the charge toward a more outdoorsy lifestyle.
KOA will hold your hand to get started, providing design assistance for park upgrades, additions, rehabs, and reconfigurations as well as marketing collateral and training. While the current initial franchise fee seems modest at just $11,500 for a converted campground or $32,000 for new construction, you will pay 10% of your registration revenue toward royalty and advertising fees.
This is a good franchise opportunity if you have the skills to spot the perfect location, negotiate a below-market price on the property, and manage ongoing marketing efforts.
#2. Real Property Management
Real Property Management has top rankings from both Forbes and Entrepreneur magazine. When real estate sales are down, rental properties go up—as does business for property managers. A franchise can boost your bottom line with a brand power, training, and systems support.
Real Property Management says you can open your doors for business in as little as 90 days. They provide eight weeks of initial on-site training followed by four days at their headquarters. To become a franchise owner you’ll currently need $90,000 in liquid capital, including the $45,000 franchise fee. You can expect significant overhead going forward, as they require you to lease office space.
Although many states require property managers to be licensed real estate agents, don’t let the lack of credentials keep you from this opportunity. Real Property Management claims that there’s no experience necessary and getting licensed is simple.
HomeVestors® is the nation’s leading real estate investing franchise with over 1000 franchises across 46 states and D.C.. Their “We Buy Ugly HousesⓇ” marketing campaign is known and trusted by homeowners, bringing new investment opportunities to franchisees every day. And, regardless of whether the market is up or down, you’ll have access to the top real estate tools that add value to your business.
Compared to other franchise opportunities, HomeVestors requires a lower initial franchise fee and superior training. You don’t need experience to get started and you can grow your business according to your own personal financial goals, all with the guidance of a dedicated mentor to help you along the way.
Reach Your Business Goals With Real Estate in Mind
When considering a franchise business related to real estate, you are going to need to take stock of your personality and work style. Perhaps your strengths will lead you to a business that requires more of an advisor role like property management. Or, maybe you are a natural team leader who focuses on service quality. That would put you in good stead with being a hotelier. But, only the true entrepreneurs will be drawn to real estate investing. If that is you, get in touch with HomeVestors today to find out more about your next career move.
Each franchise office is independently owned and operated.