Estate Agent Franchise Cost

Why is the estate agent franchise cost so viable?

Allow us to take you through the pros and cons of it all.

Working within estate agent franchise costs is a fascinating world. You’ve got 10% of top performers that drive 90% of the revenue, and then you’ve got a long tail of underperformers. These individuals were sold franchisees – or they’ve bought them – and they’ve not delivered, for whatever reason. Either the franchisor hasn’t delivered, or the franchisee isn’t taking it seriously enough. Unfortunately, this can happen, so what we’d like to do is discuss the pros and cons of it all.

  • Where people get good value
  • Where some franchises do well
  • Where some do not so well

Then, maybe towards the end, we can touch on the estate agent franchise cost.


An estate agent franchise costs time, money, patience (and panache)

Give 10% of your turnover away. No, not profit (and yes, that’s a LOT of money).

A lot of the franchisees that are in the franchise business don’t have robust business plans. A lot of them see it as 10% of the profit. However, when you work out the numbers, that’s the FIRST thing you need to take off. Otherwise, if you don’t pay that you’ll lose the brand, and the brand is the BIGGEST attraction for the pros. The reason to join a franchise is the support that you get and the branding is an indispensable part of that.

Well-established brands have traction – but 10% of your turnout equates to half of your profit. Some figures can be around £2,000 a month. Yet, on average, people will pay.

However, it’s a lot to give away, and you need to retrieve that value from somewhere else in the franchise network. From what we can tell, there are varying grades of support within different franchises to franchisees. Some function like a tamer version of the Wolf of Wall Street. Franchisees come out beating their chest. They’re wearing the t-shirt, and they LOVE what they do. Yet, others are not quite like that. There might be a bit of friction between the franchisor and the franchisee. It may have been like this for years, and – for whatever reason – that’s happened, but you always find that 10% of successful franchises do buy into it.

What the 20% “cream of the crop” of estate agent franchises cost that the other 80% don’t

It’s not just the monetary estate agent franchise costs you need to consider.

In all honesty, it comes down to the basics of working hard, caring and wanting to be there and being proud of what you do for a living. Some join that were once plumbers in a previous life or schoolteachers or driving instructors. Whilst we have NOTHING against any of those trades, we’re just highlighting that you can come from a different world and think that property is easy.

However, I think you can be very easily put off by it in a short space of time.

Yet, as we know – you have to look at the long game. The best performers are ALWAYS looking five years ahead. They have a five-year plan and know where they’ll take their business. However, if you haven’t got that care and duty about your business, you just get to the end of each month and pray you’ve enough to pay the bills. To this end, people have just bought a business in a box. You can achieve that with a popular franchise like McDonald’s. The Golden Arches is famed for drawing people in – because it’s a world-renowned brand. Yet, others have probably bought a franchise, installed a nice shop front with a nice logo and everything and expected folk to come through the door.

But do such aspects of the estate agent franchise cost system really work?

No, and you can’t leave it. You can’t go and play golf.

Sure, you can if you’ve been doing it for a long time and you’ve implemented a management structure and staff that truly care about the business. Why? Because you’ve got people buying from you. Therefore, you can go and play golf at a moment’s notice . . . That’s fine, but the best businesses don’t do that. The owners are present. They’re in that business EVERY DAY. Yet, if you talk to some of these franchises, they’re working 12/14/16 hours a day – and they’re still finding it tough.

Is that because they’re working too much?

There’s a degree of getting the balance right, but the point of having a franchisor is that they’re looking out for you, so you don’t have to go and do that bit. You don’t have to figure out the training. You don’t have to figure out the recruitment. You don’t have to figure out the props, the technologies and negotiate the deals. They should be doing that for you.

On the other side of the coin, the more support franchises offer, the more they want.

Franchisees of some businesses might have felt under supported, but then it’s a two-way thing.

It’s a marriage – isn’t it? You’ve BOTH got to want to try! You can’t just sit back and let the franchisor take you to a wonderful place without your input. You’ve got to give back. Unfortunately, there’s a lot of imbalance. With most things in life, the more you give, the more you want to receive. We certainly see that when we mix with franchisees that attended more regional and national meetings.

But do you think franchises are really worth 10% in the short term?

The first cycle of the contract is generally a five-year grace. In the beginning, it’s value for money and – because you’re first in – you NEED to learn the brand so you need ALL the support. You’re essentially losing your virginity, right? It’s an exciting period, and you’re learning – you’re like a sponge – but the second cycle of those five years is different. You’re a bit stronger now. You’ve done that training and NO LONGER need that support, but you wouldn’t be where you were without it.

Let’s be honest, 80% of businesses fail in the first five years. Yet, only 30% of franchises fail.

Therefore, if you’re taking on a franchise, you’ve got to be prepared to pay that 10% for the duration. The only time to dispute the fee is over a period where it’s no longer money-for-money. Let’s say you’ve had the brains for seven or eight years, and you’ve got two years left before you’ve got to renew again. You can’t call it because you’re going to LOSE all that. There are just too many negatives. You’re going to lose that great traction, so you kind of get stuck. You’ve got to be prepared. It’s a long term thing.

When it comes to the estate agent franchise cost, what’s a nice round 10% between friends?

2.5% is good value for money for the brand. The other 2.5% is good value for the support.

The remaining 5% AFFORDS you a federation. This is a partnership born of like-minded individuals brought together. Individuals who aren’t against each other as such but still compete. In such a position, you’re able to ask their opinion. What’s working? What isn’t?

With such a federation, the members are paying for what they need.

Yet, with franchising, some aren’t always paying for what they need. They’re paying for things they used to, and that need goes away . . . but the payment stays the same – and that’s the problem. It’s a REALLY profitable business. Now, I don’t know if you’ve noticed, but the recruitment of new franchisees in the last few years has curtailed. Nowadays, most seem to be focusing more on HELPING their existing network. They achieve this via other agencies or bolt-ons as opposed to bringing new ones in, which is what we focus on.

Why invest in unestablished estate agent franchise costs during such a disruptive time?

This isn’t limited to franchises as a whole but the disfranchised mind-set of the British public now.

We’re currently living through a historically difficult housing market, complete with LOW transactions. If you were to look at the last twenty years, we’ve not quite faced anything akin to this Brexit/COVID crisis, so there’s a confidence thing. It might not FEEL like an investment will be of great value, but with that said, there MIGHT be some consolidation in the next 12 to 18 months. For example, you’re an independent about to shut your doors – what have you got to lose by joining a franchise? At least that way, you keep going. You get to continue what you like WITH additional support.

That’s just ONE thing an estate agent franchise might cost in your favour.

Some franchises take over established agents and pay them a lump sum to rebrand and become a franchise. It’s a great way of bolstering an estate agent network and is a smart move for the franchisor. The franchisee continues paying that 10% – which doesn’t seem so bad when they’re rescuing you from a situation where you’re going to flourish and grow . . . Yet, the real question would be whether you got that 10% back – plus more because that would be WHY they’re doing it. And who wouldn’t take the leap? After all, estate Agents are gatekeepers to the most interesting subject in the world to the British after the weather.

Want to know the cost of an estate agent franchise?

                It pays to play when you benefit from . . .

  • Best in class training delivered by experienced professionals
  • The freedom to create a balanced life, tailored to you
  • Full autonomy and the space to run your own business
  • Operate under an award-winning, successful brand
  • Recover initial investments in the first few months of trading
  • Systems and processes to operate a proven business model
  • Uncapped earning potential and the chance to be your own boss

Our real estate agent franchise opportunities provides . . .

Best in class training delivered by experienced professionals

The freedom to create a balanced life, tailored to you

Full autonomy and the space to run your own business

Operate under an award-winning, successful brand

Recover initial investments in the first few months of trading

Systems and processes to operate a proven business model

Uncapped earning potential and the chance to be your own boss

Your Saxe Coburg branch is waiting for you . . .

We are looking for branch directors, both in the UK and globally.

With over four decades dominating the Estate Agency world, Saxe Coburg is opening its doors. Our team’s unrivalled local knowledge and experience is one thing – our accolades are another. Branch by branch, we are creating an innovative hybrid of home-based, high end-estate agency across the UK. To continue to grow our network, we are seeking exceptional individuals who truly believe in the Saxe Coburg ethos and align with our brand.

This is a once in a lifetime opportunity to become a prospective Branch Director with our letting agent franchise possibilities.

Saxe Coburg will consider opening branches in any affluent town across the UK. We are also expanding our brand overseas. We’re also excited to speak to anyone who would like the opportunity to become a Branch Director in a country outside of the UK. Our franchise package differs slightly depending on your territory. Regardless of your destination across the globe, we would be delighted to discuss opportunities further with you.

If you want to learn more about our estate agent franchise cost opportunities, get in touch. We would be delighted to join you on this exciting journey and look forward to starting the process.

Chief Operating Officer
🏡 | Louise Martin
📞 | 07754 658 585
📧 | Get in touch below


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Saxe Coburg is committed to ethical franchising and is an accredited member of the Quality Franchise Association, whereby we follow the QFA Code of Conduct.



‘Saxe Coburg is committed to ethical franchising and is an accredited member of the Quality Franchise Association, whereby we follow the QFA Code of Conduct.