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Is it time to go franchise?
Is the time ripe for you to join a franchise? The answer depends on your needs and predilection. But whats certain is that youve never had more franchisors vying for your attention.
There are more than 20 regional and national franchises jockeying to offer the right mix of brand identity, broker services, and cost options to the small and midsize independent brokers who represent the bulk of real estate companies today.
Take Rich Motts, broker-owner of Motts, REALTORS. A few times a year the third-generation Ohio broker gets a visit from a franchise representative. So far, Motts hasnt bitten at affiliation, but hes considering it.
Although his company has name recognition and market shareits roots go back almost 55 years in Canton, Ohio, and the company consistently commands between 5 percent and 10 percent of local sales annuallyMotts is feeling the squeeze.
Like other small and midsized independent brokers, Motts bottom-line costs are going up while commission rates are shrinking. In the last couple of years, the company dollar has gotten smaller, he says.
Something for everyone?
To hear the franchises tell it, they have just what the Richard Mottses of the world need. (See page FM2 for information on services and costs of 21 of the countrys real estate franchises.)
We want to offer brokers something that makes sense no matter how they operate, says John Bearden, president and CEO of GMAC Home Services in Oak Brook, Ill.
Whats more, consumers, looking for ease and consistency in the services they consume, are driving a trend toward franchising, say franchising representatives, not just in real estate but in all industries.
Consumers are looking for a recognized level of quality and consistent experience, and thats hard for solo entrepreneurs to deliver, says Richard LaRue, director of franchise relations for Realty Executives in Phoenix.
Views are mixed on whether residential real estate is in fact trending toward franchised companies, but one thing is clear. The industry today remains primarily a business of small local companies. As of 2001, the last year national statistics were compiled, roughly two-thirds of brokers and 60 percent of sales associates were affiliated with an independent, non-franchised company, according to NATIONAL ASSOCIATION OF REALTORS data.
Those figures are up from 1996, when 63 percent of brokers and 57 percent of sales associates were affiliated with an independent company.
To be sure, therell always be brokerages for which affiliating with a franchise doesnt make sensein some cases, its simply because the owners resist any encroachment on their independence.
But, if youre open to the idea, how do you decide which franchise to affiliate with? Franchise executives say its key to know what part of your operationmarketing, technology, administrationneeds beefing up, how much you can afford, and whether the culture of the franchise makes a good match for you. That last point is something the franchise companies take seriously.
We make sure the brokers who franchise with us have the same desire for quality services and customer relations and know how to run their businesses in the same manner as the other 1,600 offices in our network, says Earl Lee, president of Prudential Real Estate Services in Irvine, Calif.
Coming in with money is essential, too, because affiliating with a franchise isnt cheap.
For me, the cost of becoming an affiliate is a major hurdle, says Mike Teer, CRS, broker-owner of Teer One Properties, a five-person brokerage in Riverside, Calif.
That cost entails more than just putting up the initial franchise fee, which can be as low as $4,500, or the ongoing royalty or per-transaction fee, which can total thousands of dollars a year. Many franchisors also require small brokers to show capital and liquidity strength to ensure that they have the wherewithal to survive in lean times.
For one company, I needed to show $100,000 in actual assets and up to $50,000 in cash, on top of the $15,000 to $20,000 in franchise costs, says Teer.
To help ease the cost constraint, many of the franchise companies offer financing arrangements to new affiliates. Details differ, but for many franchises, the assistance is limited to financing the initial franchise fee. Companies must still come to the table in a healthy capital position.
Show us the money
Given the amount of money thats needed, its crucial that franchises offer tangible benefits in return. And for independents with deep roots in a community, benefits have to mean more than just the ability to hitch their name to a nationally known company.
For Motts, it means the chance to earn ancillary, or noncommission, income. Franchises have to make a really clear case that the noncommission dollars I could get from ancillary serviceswhich is something my company hasnt focused onare worth what they would be taking from my gross commission income, he says.
For other independent brokers, the payoff theyre seeking from franchises could be entirely differenttechnology, training, a marketing planbut a payoff there must be.
RealtorMag Online
For a look at the benefits of franchises and independents, click here.
Compare residential real estate franchises
Thinking of joining a franchise? Use this chart to help you evaluate 21 of the countrys options.
Andrew Adams writes for http://www.magfranchise.org where you can find out more about franchising and other topics.Baby Celebrity Gear
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Is it time to go franchise?
Is the time ripe for you to join a franchise? The answer depends on your needs and predilection. But whats certain is that youve never had more franchisors vying for your attention.
There are more than 20 regional and national franchises jockeying to offer the right mix of brand identity, broker services, and cost options to the small and midsize independent brokers who represent the bulk of real estate companies today.
Take Rich Motts, broker-owner of Motts, REALTORS. A few times a year the third-generation Ohio broker gets a visit from a franchise representative. So far, Motts hasnt bitten at affiliation, but hes considering it.
Although his company has name recognition and market shareits roots go back almost 55 years in Canton, Ohio, and the company consistently commands between 5 percent and 10 percent of local sales annuallyMotts is feeling the squeeze.
Like other small and midsized independent brokers, Motts bottom-line costs are going up while commission rates are shrinking. In the last couple of years, the company dollar has gotten smaller, he says.
Something for everyone?
To hear the franchises tell it, they have just what the Richard Mottses of the world need. (See page FM2 for information on services and costs of 21 of the countrys real estate franchises.)
We want to offer brokers something that makes sense no matter how they operate, says John Bearden, president and CEO of GMAC Home Services in Oak Brook, Ill.
Whats more, consumers, looking for ease and consistency in the services they consume, are driving a trend toward franchising, say franchising representatives, not just in real estate but in all industries.
Consumers are looking for a recognized level of quality and consistent experience, and thats hard for solo entrepreneurs to deliver, says Richard LaRue, director of franchise relations for Realty Executives in Phoenix.
Views are mixed on whether residential real estate is in fact trending toward franchised companies, but one thing is clear. The industry today remains primarily a business of small local companies. As of 2001, the last year national statistics were compiled, roughly two-thirds of brokers and 60 percent of sales associates were affiliated with an independent, non-franchised company, according to NATIONAL ASSOCIATION OF REALTORS data.
Those figures are up from 1996, when 63 percent of brokers and 57 percent of sales associates were affiliated with an independent company.
To be sure, therell always be brokerages for which affiliating with a franchise doesnt make sensein some cases, its simply because the owners resist any encroachment on their independence.
But, if youre open to the idea, how do you decide which franchise to affiliate with? Franchise executives say its key to know what part of your operationmarketing, technology, administrationneeds beefing up, how much you can afford, and whether the culture of the franchise makes a good match for you. That last point is something the franchise companies take seriously.
We make sure the brokers who franchise with us have the same desire for quality services and customer relations and know how to run their businesses in the same manner as the other 1,600 offices in our network, says Earl Lee, president of Prudential Real Estate Services in Irvine, Calif.
Coming in with money is essential, too, because affiliating with a franchise isnt cheap.
For me, the cost of becoming an affiliate is a major hurdle, says Mike Teer, CRS, broker-owner of Teer One Properties, a five-person brokerage in Riverside, Calif.
That cost entails more than just putting up the initial franchise fee, which can be as low as $4,500, or the ongoing royalty or per-transaction fee, which can total thousands of dollars a year. Many franchisors also require small brokers to show capital and liquidity strength to ensure that they have the wherewithal to survive in lean times.
For one company, I needed to show $100,000 in actual assets and up to $50,000 in cash, on top of the $15,000 to $20,000 in franchise costs, says Teer.
To help ease the cost constraint, many of the franchise companies offer financing arrangements to new affiliates. Details differ, but for many franchises, the assistance is limited to financing the initial franchise fee. Companies must still come to the table in a healthy capital position.
Show us the money
Given the amount of money thats needed, its crucial that franchises offer tangible benefits in return. And for independents with deep roots in a community, benefits have to mean more than just the ability to hitch their name to a nationally known company.
For Motts, it means the chance to earn ancillary, or noncommission, income. Franchises have to make a really clear case that the noncommission dollars I could get from ancillary serviceswhich is something my company hasnt focused onare worth what they would be taking from my gross commission income, he says.
For other independent brokers, the payoff theyre seeking from franchises could be entirely differenttechnology, training, a marketing planbut a payoff there must be.
RealtorMag Online
For a look at the benefits of franchises and independents, click here.
Compare residential real estate franchises
Thinking of joining a franchise? Use this chart to help you evaluate 21 of the countrys options.
Andrew Adams writes for http://www.magfranchise.org where you can find out more about franchising and other topics.Baby Celebrity Gear
Cancer Lung Pet Scan
Cursor Codes For Myspace
007 Theme
Cottage Holiday Scotland
Beach Florida Nudist
Global Warming Anthropomorphic
Contractor Excavating Visalia
Orange Tights Toddler
Alabama Ebay Football Ticket
Barcelona Hotel Palace Spain
007 Spy Software Download
1 Attorney Information Com Mesothelioma Mesothelio
Top Ten Best Dog Food
06 11 5 Freedom Sea
Best Rate For Cellular Phone Service
Shadow People
10 Best Cologne List Man Selling Top
Centrifugal Clutch
2007 Golf New R32 Vw
Celebrity Who Look Alike
Villa In Spain Marbella
Grauer Star
2008 Car Lincoln
Artisan Home Entertainment
House New Old York
Jesus Love Words
Best Vitamins And Supplements
Global Warming Humans
Milton Center For Womens Health
Fuel Cars
Sail Boat Winches
Italian Food And Wine
Ice Snapple Tea
Kt52
Basketball Injury
Nuova Ford Focus
1 Alternate American History Jesus Liar Religious Right Version Vol
1500 Every Global Unstoppable Warming Years
Designer Coffee Table
Granite Bird Bath
England Live Soccer Score
0 Three
Diego Entertainment Party San
Beach Golf Hotel Myrtle Package
Tidewater Trading Post
10 Fact Global Warming
Kt147
Resales Share Time Westin
Ramones Tshirts
Puerto Radio Rico Salsa Station
Hollywell Bay
Garden City Kansas Hotel
Tractor Trader
African American Baby Gift
Buzz Party Story Supply Toy Woody
Flight From Paris Rome
Mass Storage Devices
Pa Driving Age
Fixed Immediate Annuity
Miami Sports Water
Boat Logic Racing Sail
Home Home Loan Mortgage Refinancing
Computer Water Cooler
200 Customer Management Mas Relationship
Atlanta Custom Jewelry
Georgetown University Man Basketball
Auto Specifications
Signature Stamp
Coconut Oil Supreme
Advantage Country In Living
100 100 3rd Edition Hike Hike In Northwest Oregon Southwest Washington
Painters Putty
Drink Machine Vending
Kt179
100 100 3rd Edition Hike Hike In Northwest Oregon Southwest Washington
Lonely Planet Images
Bikers Crash
Ohio Wellington
Kt169
Adult Invitation Party Tea
Blue Water Marine
Coastal Community Federal Credit Union
Pc Speed Test
Best College Party Song
Kt85
Democratic Candidate 2008 Presidential Election
Marine Gasoline Generator
Investment Internet Research Training
Ashley Valley Medical Center
Customer Relationship Management Removethis
Ontario Schools
Movie Flix
Bakery Cafe Specialty
0 Card Credit Free Gift
0 Blood Diet Type
Gateway M520s
Brown Trifold Wallet
Calf Milk Replacer
Breakfast Cereal Morning Saturday
Bellydancing Costumes
1 Day Depression Journey Postpartum Sleepless Through Womans
Job Fairs In Phoenix
Melbourne Florida Hotels
Emu Oil Used
Wholesale Computer Hardware Software
Celebrity Theater Phoenix Az
Arkansas Law Enforcement Training
Codes Cheats Hints Xbox
Diet Guide Nutrition Pocket Therapy
Adoption Agency Pet
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