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RE/MAX received record number of franchise enquiresEstate agency group says many agents are attracted to its business model.
The highest ever number of inquires for franchises comes in the wake of the 204 office group reporting a national turnover record of R20 billion for its 2007 financial year and being awarded the title of “Best Real Estate Group in South Africa for 2008.”
Ronan McCool, franchise director, says the group received 18 inquiries for new franchises for February with the majority generated by “boutique” operators. The percentage of inquires from existing franchises investigating conversion to the RE/MAX brand was also a new monthly record. The group, which has opened five new franchises in the first two months of this year, received only four inquiries for new franchises in February last year.
McCool says the current adjusting market suggest more “boutique” offices were finding it difficult to survive from rising core costs and were under increasing under pressure from reduced turnovers. “The cost of business has increased for the smaller independent agencies and the urgency now is for them to build turnovers to counter the effects of the shrinkage in sales and clearly some believe national branding is a solution.”
Increased market visibility and a stepped up advertising campaign, incorporating the group’s profile link with Super 14 rugby competition, McCool attributes to an increase in the number of quality agents applying to join the group. “Most pleasingly is that the group’s profile is attracting the more business minded estate agent disheartened with traditional split commissions and keen to financially maximise their productivity.”
In spite of a cooling market and reports of an exodus of estate agents from the industry, McCool is confident the group’s target of 20 new franchises in the current year will be “comfortably achieved.”
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