Franchising Not For All Agents
November 15th, 2012 by Geoff Baldwin
Although most real estate franchisors would like to argue otherwise, franchising is definitely not for all agents to the point where for many it would be a waste of their money to consider joining a group according to RE/MAX Western Australia regional owner, Geoff Baldwin.
“I have been managing or owning major franchise brands for over a decade and during that time I have interviewed hundreds of agents considering the franchising option however I would say that of those, only five out of ten would benefit from joining a group and of the remainder many would not take advantage of the benefits and again would be wasting their time”, Mr Baldwin said.
“The honest truth is, there is a great variance in the quality of real estate franchise groups just like in any other industry where franchising exists so choosing one that suits your requirements is critical.
“Although there are some notable exceptions, older, long established independent agents usually battle with the changes required to take full advantage of joining a franchise system as do some younger, brash agents who have a need to conquer the world with their own name in lights.
“There is also another breed of agent who will join a franchise system and then insist on doing everything their own way with the result that they miss out on enormous opportunities and in so doing waste their investment.
“Franchising is most certainly a two way street where an agent knows his or her strengths and weaknesses and where the franchisor fills in the gaps plus provides all the advantages that an independent cannot access.
“World class training, support, benchmarking, buying power, national and global exposure, recruiting, marketing, media exposure are just some of the advantages offered by a good franchise however it is the old horse and water adage whereby it will only work if the franchisee uses what is on offer.
“A franchisee has a right to expect a return on the investment they make in joining a group and the best way to measure that is by increased business they achieve as a result of joining.
“It’s also important to join a group that recognises that it is its people who depict its success and not the brand itself and that if the group empowers its people then the brand cannot help but succeed.
“Personally, my goal is to at least double a franchisees turnover through the services we provide including ensuring a good supply of recruits and convertible listing leads on an ongoing basis which is a basic measurable service not many franchisors focus on.
“It’s unfortunate that a lot of agents are anti franchise more through not knowing than through experience and I encourage any new prospective agent to explore all of the options making a decision”, Mr Baldwin said.