Harcourts is a privately owned real-estate brand that started in New Zealand in 1888 and now works in 10 countries. With 400 locations, Harcourts Group Australia is the master franchisor across Australia.

“We first stepped out of New Zealand 20 years ago,” says CEO Marcus Williams. “We are the third-largest real-estate group in Australia.”

Behind-the-scenes licensing arrangements are in place, but terms are tailored for each individual new franchise. Five-year terms are the standard.

“We insist on franchisees being owner/operators,” says Williams.

While the licensee in charge must have the proper expertise to run the business, there are instances where there is a partner investor, but the licensees need to have a real-estate licence. Statutory regulations specify the qualifications and responsibilities for licensees.

“We want to be sure the person in charge is actively involved in the business, a former real-estate agent or someone who has worked in the industry,” says Williams.

A standard Harcourts territory equates to 10,000 houses, and depends on how close the franchise office is to others, and how many people work for the franchise. They are generally non-exclusive, but there are rules to govern prospecting.

To become a franchisee, buyers need to pay a joining fee of $5000 to $10,000 for a standard five-year term with an option to renew for another five years. To secure a lease and fitout requirements, costs range from $50,000 to $250,000. In terms of overheads, the average business owner has three to five staff members.

Support includes access to state leadership teams, problem solving, business planning, disputes support, marketing, training, a full technology suite of Harcourts One products and apps, annual conferences, leadership focus, and access to Harcourts Academy, a registered training organisation.

Franchisees need to be good listeners, financially astute and driven, says Williams. “They need to understand the why – why they are going into business.”

He has a positive outlook on the the $3 trillion housing market. “Australians love real estate,” he says.

His advice for potential buyers is to really know what they are getting into.

“You have to take your time to ensure the values of the leadership and franchise business are aligned with yours. Look under the bonnet to ensure the group has the value proposition to make you successful.”