Trends and Facts About Real Estate Franchises
The real estate industry in Canada is well established. The first real estate board was set up in 1888, in the growing area of Vancouver. In 1943, the Canadian Association of Real Estate Boards (CAREB) was established. Since 1986, the association has become known as the Canadian Real Estate Association (CREA).
The real estate sales & brokerage industry in Canada has a market size of approximately $21 billion, according to IBISWorld. There are over 90,000 dedicated businesses (both non-franchised and franchised) in this field in Canada.
Many of these businesses have the designation of being a small-to-medium sized enterprise (SMEs). In fact, according to Statistics Canada (StatCan), real estate is one of the industries notable for its number of SMEs. (StatCan considers a small enterprise as one with fewer than 100 employees. Medium-sized enterprises have 100 to 499 employees.)
While real estate professionals can opt to practice independently, the advantages for real estate franchisees are numerous when compared to independent operation. Affiliating a smaller real estate firm with a larger franchise organization offers these advantages:
- Brand name recognition
- Training in current best practices and technology
- Operational support
- Marketing and advertising support
- Partnerships with related vendors, such as home inspectors, mortgage lenders, etc.
It should be noted: While most people think of brokerage or sales agencies when you mention real estate franchises—and for good reason too, you don’t have to sell property to be a real estate franchisee.
As you dive deeper into your search, you’ll find the real estate franchise industry is extremely diverse and covers many different interest areas for prospective franchisees. Other segments of the overall real franchise industry include:
- Co-working space oversight
- Salon suite rental
- Home inspection
- Leasing/property management
- Estate sale management
- Marketing support for real estate agents
- Home flipping