Franchise Frequently Asked Questions
How much does it cost to join?
Once the decision has been made to progress in a more formal manner, then an administration fee of £1500 is payable which goes some way towards covering our out of pocket expenses in progressing your purchase. The Administration fee is therefore not refundable should you subsequently decide to withdraw.
At the point of signing your franchise agreement, a further £6000 is payable which is our joining/induction fee and covers our solicitors fees in producing and dealing with your franchise agreement and also includes a degree of coaching and ‘hand holding’ concerning the principles of our formula and practical use of our ‘blue print’. Estate Agency training itself is something we would go through with a potential franchisee at the second interview in order to clarify the potential franchisee’s personal needs.
What size office should I look for?
This very much depends on your own aspirations, budget and lifestyle you want to live. For some, they have started small and have grown them into a substantial size whereas others opened more substantial operations at the outset.
How large a territory do I get and do I have exclusivity?
It may surprise you to learn that some of our most profitable branches operate in smaller territories where costs are lower because the competition is restricted. However, to ensure each territory has ample capacity to deliver a healthy profit, we work to specific criteria, thoroughly researching the area, analysing the nature of the competition and the variation in property. Because each region has entirely different characteristics, the size of the areas varies considerably from territory to territory and if practicable, the proposed boundary is agreed with the franchisee before its actual position is finalised. The franchisee has exclusive rights to act on behalf of sellers and landlords with properties within the territory.
Very roughly, what level of funding (including any loans/overdraft facilities) do I require?
Basically the figures are £7500 + setup costs and working capital. The total amount of funding required varies from case to case. There are so many imponderables that the best we can do is to give you some rough guidelines. For example, if you started with a modest set up, doing a few sales but mainly concentrating on lettings with a view to expanding further into sales as your portfolio grows, then this could possibly be achieved with an investment of around £50,000. On the other hand, if you wanted to set up a medium sized office dealing ‘full on’ with both sales and lettings, then an investment of approximately £110,000 would be required. The figures quoted are just a guide but they are based on an ‘all inclusive’ figure; this means they also include the funds required to run the office whilst turnover is building.
What are Country Properties long term plans?
Our long term plan is to expand the network throughout the south-east, the midlands and beyond, to eventually cover the whole of the country. As we stated earlier in this brochure, our philosophy has always been to do it right, for it not to be ‘built on sand’ and therefore we will only expand when we find the right people who fit our criteria. The larger we get, the greater the benefits will be for the franchisees.
Can you give me a rough idea on what kind of profit I am likely to make?
A very understandable question but again one that is subject to many imponderables. What we can say is that during reasonable market conditions our top performing franchisees have generated profits in excess of £120,000 per annum. At our initial meeting we will provide you with our ‘More Facts & Figures’ that includes two example spreadsheets* covering the initial three years of trading.
* To err on the conservative side we have constructed the two spreadsheets from figures we believe are likely to be generated in a subdued market.
If I am Interested, what do I do next?
If you think you are the type of person/people we are looking for and feel comfortable in making the level of investment that is required, then please contact us on 01462 896148 to arrange for an informal meeting. All communication will be dealt with in the strictest of confidence.