Why the Real Estate Franchise Model is Broken

Breaking away from considering the big real estate franchise model is one of the smartest decisions you can make when thinking about who to sell your home!

Since the invention of the internet, long-established real estate franchise groups are no longer the be-all and end-all they once were.  In fact, some might say they are actually becoming dinosaurs within the industry!  Due for extinction!

Years ago working with a franchise meant that your agent was provided with the tools and resources to help make successful sales. Agents received in house training, business marketing to strengthen the brand attracting more buyers and technological resources to help sell your home.

But the internet has now reshaped the whole property market and it’s because everything is now online.

Even the smaller independent agencies now have access to the same information that franchises used to hold. Boutique agencies also have access to all the technology, systems, forms and documents needed to run their business and sell your home successfully.

So why is the traditional franchise model broken?  Because it hasn’t changed with the times.

When I worked for a franchise, less than 10 years ago, I received no in house training even though the business received training grants.  I had to take annual leave days to attend outside training which I paid myself.  Though I had many great marketing ideas, largely due to having an associate diploma in marketing and experience in working in radio, television and the newspaper industries, my ideas were never adopted.  This was because my ideas were not within the constrains of the franchise.

Another reason franchisees are going backwards is because they still need to pay their fees to the Franchisor even though they are no longer receiving the tools and support like the good old days.   Plus, they don’t have the freedom to run their businesses the way they want without the need for approvals.

As an agent working within a franchise we were subjected to the weekly sales meeting about how to condition the seller, a term used often – and still being used,  to get the price reduction to sell the homes that were lagging on the market and not selling.  It was more about volume and turning over the houses so the business could pay their franchise fees and overheads.  It was also about where the agents next listing is coming from.  It was never about creating a strategy or brainstorming new ideas on how to help sell the property.

This pressure from management turns agents into chasers for the next listing and often when agents have too many listings, they then begin to cut corners, provide a sub level of service to the sellers and buyers and often undersell property!

Since leaving the franchise and starting my own business, I couldn’t be happier with how it’s all turned out.  I’m grateful to all my repeat clients and for all the referrals I receive.

If you think I could be of service to you, your family or friends by offering my real estate knowledge and expertise, then call and make an appointment.