Comments on: Unlocking Franchise Economics: Pt 1 http://realonomics.net/2008/07/unlocking-franchise-economics-pt-1/ real estate business models in the consumer-centric era Wed, 04 Apr 2012 15:25:12 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: REALonomics http://realonomics.net/2008/07/unlocking-franchise-economics-pt-1/comment-page-1/#comment-70013 REALonomics Thu, 11 Sep 2008 23:38:56 +0000 http://realonomics.net/?p=310#comment-70013 Mary, you have touched on a franchise issue that is very valid and in some cases stands in conflict with owner profitability. Some franchisors will saturate a market because they prefer more than one owner and higher revenues from franchise fees. Franchisors have a model that is based upon how much GCI they can extract from a market and they can severly limite income for a Broker/Owner by over-branding a market with multiple offices. Mary, you have touched on a franchise issue that is very valid and in some cases stands in conflict with owner profitability. Some franchisors will saturate a market because they prefer more than one owner and higher revenues from franchise fees. Franchisors have a model that is based upon how much GCI they can extract from a market and they can severly limite income for a Broker/Owner by over-branding a market with multiple offices.

]]> By: Mary Highline http://realonomics.net/2008/07/unlocking-franchise-economics-pt-1/comment-page-1/#comment-70006 Mary Highline Thu, 11 Sep 2008 21:17:19 +0000 http://realonomics.net/?p=310#comment-70006 Hi, I just read your article on franchises and wanted to share a learning experience that I had. When I moved to Colorado my Wisconsin license was no good so I needed to start over. I went to a well known company that had bought a "best known at the time franchise" and added it to their respected name. I went there because a friend invited me. Within a year or so two more franchises were sold in our city with the same brand and although the ads read "each office is independently owned and operated" our reputation was so pulled down by the other two companies we threw our franchise away and were forced to give up our well known and good name because of the franchise agreement. There are rules but when the companies are most interested in selling additional franchises it is hard to measure moral and ethical integrity (and may be easier to ignore). When I started my own company years later and knew that I wanted to have a network of offices of like minded people I knew that franchising would not work for me but quite frankly did not come up with a good alternative and so am still a one office broker with more ideas then I can put into practice. I am looking forward to future articles. Hi, I just read your article on franchises and wanted to share a learning
experience that I had.
When I moved to Colorado my Wisconsin license was no good so I needed to
start over. I went to a well known company that had bought a “best known at
the time franchise” and added it to their respected name. I went there
because a friend invited me. Within a year or so two more franchises were
sold in our city with the same brand and although the ads read “each office
is independently owned and operated” our reputation was so pulled down by
the other two companies we threw our franchise away and were forced to give
up our well known and good name because of the franchise agreement.
There are rules but when the companies are most interested in selling
additional franchises it is hard to measure moral and ethical integrity (and
may be easier to ignore).
When I started my own company years later and knew that I wanted to have a
network of offices of like minded people I knew that franchising would not
work for me but quite frankly did not come up with a good alternative and so
am still a one office broker with more ideas then I can put into practice.
I am looking forward to future articles.

]]> By: REALonomics http://realonomics.net/2008/07/unlocking-franchise-economics-pt-1/comment-page-1/#comment-45112 REALonomics Fri, 01 Aug 2008 21:37:00 +0000 http://realonomics.net/?p=310#comment-45112 Chris, thanks for noticing and reporting the linking problem in our emails. We have fixed this. The problem had to do with whether we or a user uses "www" as the prefix to the website. If you simply use, for example, http://realonomics.net/contact it would work. Using www.realonomics.net/contact, it would not. We adjusted our redirects now so that it works either way. Thanks again, and please participate with more comments. - REALonomics Chris, thanks for noticing and reporting the linking problem in our emails. We have fixed this. The problem had to do with whether we or a user uses “www” as the prefix to the website. If you simply use, for example, http://realonomics.net/contact it would work. Using http://www.realonomics.net/contact, it would not. We adjusted our redirects now so that it works either way. Thanks again, and please participate with more comments. – REALonomics

]]> By: Chris Svec http://realonomics.net/2008/07/unlocking-franchise-economics-pt-1/comment-page-1/#comment-45022 Chris Svec Fri, 01 Aug 2008 19:55:37 +0000 http://realonomics.net/?p=310#comment-45022 I'm the Vice President of New Market Development for Real Living, a 4,000 agent company with 180 offices in 20 states. The contact link on your site is not working, how can I post our information on your site? Please let me know as we'd welcome the opportunity to participate. I’m the Vice President of New Market Development for Real Living, a 4,000 agent company with 180 offices in 20 states. The contact link on your site is not working, how can I post our information on your site?

Please let me know as we’d welcome the opportunity to participate.

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