When I quit my corporate job to start investing in real estate full-time, I thought I knew everything there is to know about starting a business. I read all the books, watched all the YouTube tutorials, and had interviews with some local investors, so indeed, I was prepared for anything. However, reality quickly set in—I was overwhelmed by all the unexpected details and expenses and didn’t know how to market my services to bring in a steady income effectively. I was in over my head and worried I’d have to close up shop and go back to the 9-5 before I even got started.
Before I threw in the towel completely, though, I decided to call up one of the investors I’d interviewed earlier and see if he had any advice. That’s when he let me in on a little secret—he didn’t start his business from scratch but instead purchased a real estate investing franchise. To him, it was the best of both worlds. He still got to be his own boss and run his own business, but he had the added support, marketing, and tools of an established national brand behind him.
Honestly, I’d never considered buying a franchise before because I didn’t understand what they were or how they worked. I had a lot of questions, such as when you buy a franchise, what do you get? Here’s what I found out.
What Is a Franchise?
A franchise is essentially an independent small business that you can purchase from an established franchisor. You pay an initial upfront fee and ongoing royalties to the franchisor, in return for the use of an established trademark, ongoing support and training, and other benefits. Basically, instead of starting a business from scratch, you’re taking advantage of a more prominent brand name by becoming a franchisee.
When You Buy a Franchise, What Do You Get?
Franchise contracts will vary depending on the company, industry, and location, but there are a few standard perks and privileges that you should look for in any franchise relationship.
- Name Recognition
One of the most complex parts of starting a business is having no name recognition or reputation in your local industry. Some customers will take a chance on an unknown quantity, but most people prefer to work with established brands they can trust. When you buy a franchise, you get to take advantage of the name recognition and trust that the existing brand already has, instead of starting from scratch and spending years building your reputation.
- Training and Support
Whether starting a business in an industry you’ve worked in for years, or you’re jumping into something entirely new, the proper training and support is critical to the success of your venture. When purchasing a franchise, you’ll get industry-specific training and guidance on how to start and run your business. The best franchise opportunities also include a mentorship program, so you can work one-on-one with an experienced franchisee who’s an expert in your field.
- Marketing and Advertising
Many new business owners underestimate how expensive and time-consuming marketing and advertising can be, especially if you don’t have any prior experience. When buying a franchise, you get to take advantage of established advertising campaigns and marketing strategies. Business Oversight Running a business doesn’t always come naturally, so most of us use trial and error to figure things out. However, in the business world, mistakes can be extremely costly. As a franchisee, you can benefit from the experience of your network and use the established operational models provided during training. You can avoid numerous mistakes made by rookie entrepreneurs and invest more time and money into the successful operation of your business.
Some people choose to view a franchise as a pre-built business, where you can buy and start running without a lot of the risk and guesswork that’s usually involved. However, I think the best franchisees have the entrepreneurial spirit to make the business their own while still taking advantage of all the benefits of buying a franchise.
Get Even More from Your Franchise
It’s important to remember that not all franchise opportunities are created equal, so you need to do the homework to make sure you’re getting all the tools, support, and benefits you need to run a successful business. For me, the best real estate investing franchise opportunity was HomeVestors®.
HomeVestors is a national network of independent real estate investing franchisees who have bought and sold over 110,000 houses since 1996. You’ve probably seen their “We Buy Ugly Houses®” marketing campaign on billboards around the country, so you know they have the name recognition to build your reputation in the industry.
HomeVestors also offers comprehensive training and support, including the mentorship of a Development Agent who can help you learn the ropes in your local real estate market. Plus, you’ll gain access to the UGVille® platform of real estate investing software, including property valuation tools, a hard money lending portal to help you find financing for your qualifying property purchases and repairs, and more.
When you buy a franchise, what do you get? If it’s HomeVestors, you can get everything you need to help you build an independently owned and operated professional real estate investing business. To learn more, contact HomeVestors today.
Each franchise office is independently owned and operated.
HomeVestors of America® is the nation’s only real estate investing franchise, providing business opportunities to real estate and investment professionals across the nation.