This year, more than 1,000 companies applied to be considered for Entrepreneur magazine‘s Deductible 500, and in the 39th year on the list, seven real estate companies have landed coveted spots.
Using a proprietary formula, Entrepreneur considers a myriad of factors in its ranking including: costs and fees, size and growth, support, brand strength, and strength and stability financial.
Like restaurants, real estate franchises are still a stable presence on the list and this year’s ranking includes some major players near the top.
Topping the list of real estate franchises is Re / Max at no. 5 – up from its 10th overall ranking last year. Flanked on the UPS and Sonic Big Dog List, the global real estate franchise has more than 115,000 sellers in more than 100 countries and territories.
With 3,729 franchises in the United States and 3,831 abroad, Re / Max enjoys a comfortable lead in terms of the number of offices. Franchise fees vary between $ 15,000 and $ 32,000 and Re / Max offers in-house financing to cover the costs.
âNo one in the world sells real estate more than Re / Max in terms of residential transactions,â said Adam Contos, Co-CEO of Re / Max in a declaration. âEntrepreneur continues to rank us higher than our competitors, thanks to the unmatched quality of the real estate professionals in the Re / Max network. “
However, all was not rosy for Re / Max in 2017. After the announcement of an internal investigation into Contos and co-CEO Dave Liniger regarding possible business and ethical violations instead of his call for the results of the third quarter of 2017 (which has not yet been rescheduled), the company’s shares fell and ended the year down almost 20 points from its high at the end of October. The investigation is not yet complete, a spokesperson confirmed to Inman earlier this month.
With 741 franchises in the United States and 144 abroad, according to the entrepreneur, Keller Williams is the second real estate franchisor on the list. Claiming the no. 22nd place is a big step forward for Keller Williams, who placed 77th on the 2017 list.
Keller Williams – who has practiced franchising for more than three decades – requires franchisees to pay an initial franchise fee of $ 35,000 and continuing royalties of 6%. The contractor estimates the initial investment required to be between $ 183,947 and $ 336,995.
Based in Dallas HomeVestors of America has been steadily increasing over the past decade. With its âWe buy homes for cashâ model, the company has more than quadrupled its total number of franchises over the past decade, from 210 in 2008 to 851 in 2018.
With franchise fees required between $ 18,000 and $ 35,000 – and only one person needed to start a franchise – there are plenty of opportunities to join the business, which has been around for over two decades. Currently, HomeVestors of America is looking for franchisees across the United States.
Residential and commercial real estate giant Weichert Real Estate Affiliates, who comes to number. 139, was started by Jim Weichert in New Jersey in the late 1960s, but it wasn’t until 2000 that the company began franchising.
Over the next nearly two decades, it grew to 322 franchises to support its 129 company-owned offices across the country. Weichert charges an initial franchise fee of $ 25,000 and an ongoing additional royalty of 6 percent.
In the six short years since Realty One Group started the franchise, the company has grown to 60 franchises in 15 states.
The Las Vegas-based lifestyle real estate company has over 10,000 agents and continues to grow, seeking franchisees across the country. This requires an initial franchise fee of $ 25,000 and also funding opportunities through relationships with third-party companies to cover franchise fees, start-up costs, equipment, inventory, accounts receivable and more. wages.
Since the housing market collapse in 2008, Realty Executives International has been steadily declining in terms of franchise volume. In 2008, it had 585 franchises in the United States, 116 international franchises and in 2018, that number fell to 365 and 112, respectively.
Despite the decline, it still has a significant international presence as evidenced by its place on the list. The company – which operates on the 100% commission model – offers in-house financing to cover initial franchise costs (between $ 1,000 and $ 50,000) for interested franchisees, as well as additional start-up costs.
A newcomer to the world of real estate franchising, United Real Estate has grown 227% over the past three years. The company began franchising in 2013 and now has 67 franchises across the United States, with the highest concentration east of the Mississippi.
The company charges a franchise fee of $ 35,000, but offers in-house financing to help cover the costs. It also offers a 10% discount on fees for franchisees who are veterans of the United States Armed Forces.