Franchise FAQs
Straight answers to the questions we are asked most often by people considering a ROOMS® property franchise.
About the ROOMS® franchise
- What is a ROOMS® franchise?
- ROOMS® is a UK co-living franchise — professionally managed shared homes, known in the sector as HMOs. Rent to rent, sold as our Freedom product, is our core model: franchisees take properties on from landlords on a guaranteed-rent basis and let them room by room. Freedom is supported by Concierge (fully managed) and Foundation (tenant-find) services, all within an exclusive territory.
- Do I need property experience to become a franchisee?
- No. Many ROOMS® franchisees come from outside the property sector. Induction training, an operations manual and ongoing coaching cover lettings, co-living and HMO compliance, sales and business management.
- How much does a ROOMS® franchise cost?
- The initial franchise fee is £20,000 + VAT per exclusive territory. Ongoing costs are a turnover-based monthly management service fee and a 1% contribution to the national marketing fund.
- How long is the franchise agreement?
- Five years, with free renewal.
Territories and getting started
- Are territories exclusive?
- Yes. Each ROOMS® franchisee is granted an exclusive, protected territory so you are never competing with another franchisee for the same landlords or residents.
- What are the steps to joining ROOMS®?
- There are five steps: Discovery, Research & Planning, Formal Offer, Induction Training, and Launch. The process starts with an informal conversation and typically moves at the pace that suits you.
- Do I need premises or staff to start?
- No. You can start from home and add an office and team as your co-living portfolio grows, which keeps your overheads low in the early months.
The business model
- How does a ROOMS® franchise make money?
- Primarily through Freedom, our rent to rent product: you control the property on a guaranteed rent to the landlord and keep the margin between that and the room income. On top of that sit recurring fees from Concierge full management and Foundation tenant-find work, plus additional landlord and tenant services.
- Does ROOMS® offer rent to rent?
- Yes, and we are proud of it — rent to rent is our Freedom product. It is the model ROOMS® was built on and it remains central to the franchise. You get the deal criteria, appraisal tools, contracts, compliance framework and operational systems we have refined over years of running it ourselves.
- Why HMOs rather than standard lettings?
- Co-living management is more complex — licensing, compliance and room-by-room lettings — so landlords pay for specialist help and most generalist agents avoid it. That complexity is the moat that protects your margins and fees.
- What support do franchisees receive?
- Induction training, tailored coaching, operations and procedures manuals, a launch marketing pack, national website and local microsite, property portal access, lettings and management software, and ongoing head-office support.
- Can I get funding for a ROOMS® franchise?
- UK banks generally lend against established franchise models. ROOMS® helps you build the detailed business plan lenders expect as part of the package.