Real estate diagnosis: Dekra Diagnostic opens to the franchise

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After about 15 years of development in the sector of
real estate diagnosis
, Dekra has opened 35 branches in France and today has nearly 200 specialists on the territory. In the spring of 2018, this network announced a significant strategic change with the opening of his franchise.

Dekra launches real estate diagnostic franchise

Originally, the Dekra group is a specialist in automotive technical control. But over the years, he has chosen to diversify his activities to become a global partner in the safety of individuals and professionals. He notably added the real estate diagnosis as a new string to his bow in 2003, thus giving birth to the brand Dekra Diagnostic. This activity really took off in 2014 to reach the 16 million euros of turnover, pushing the network to question the follow-up. "In a very competitive environment, we have managed to turn our real estate diagnostic business into a solid business model, in terms of revenue and profitability"says Nicolas Blazy, executive director and network of Dekra Diagnostics. So why not transform the test with the franchise? Especially since the network already manages major national contracts with customers such as SNCF, EDF or Orange, and will increasingly need franchisees to fulfill its obligations and mesh the territory.

Development ambitions

Result, Dekra Diagnostic is rather confident and hopes cover seventeen regions by the end of 2018. "In mid-November, the new network is already positioned in ten territories (Nantes East, Ancenis-Cholet, Paris 15, Paris 14, Saint-Denis, Evry, Beziers-Narbonne, Pyrenees-Orientales, Troyes-Chaumont, Melun-Provins ), and Nicolas Blazy evokes "advanced negotiations" on seven other zones (South Lyon, Vesoul-Besançon, Valenciennes, Libourne, Landes, Nice-Menton, Compiègne-Senlis) », reports the magazine
Dimag
. For 2019, the brand hopes to stay the course and even strengthen its franchise development with the opening of twenty-five additional branches. Eventually, Dekra Diagnostic could count 200 units and federate a network of 150 franchisees.

The real estate diagnostic market

Supported by
real estate market up
where transactions are numerous and by a regulation which always introduces more mandatory diagnostics for a sale, the real estate diagnosis shows great performances in recent years. Since 2012, the sector has 13.8% a year on average. "For example, the radon diagnosis was made mandatory on July 1, 2017 and the report of the electrical and gas installations for rentals was introduced on January 1, 2018", recalls the sign on his
website
. Not to mention that the diagnoses have a limited duration in time, which induces a recurrence of the benefits, and therefore the activity for the franchisee.

Key figures

– Entrance fee: 15,000 euros
– Royalties: 5% of turnover
– Advertising fee: 1%
– Global investment (out-of-doors): from 70,000 to 80,000 euros
– Network turnover in 2017: 15.5 million euros