The Professionals said its fixed-cost franchise model will attract many agents to its new US-based venture who are “disenchanted” and seeking a new business approach, company CEO Glyn Morgan has claimed following the recent opening of its first office in California.
“The fee models generally in use in the U.S. have contributed to a negative impact on real estate broker profitability and therefore viability," Glenn Melton, Professionals Realty Group USA (ProsUSA) president, said.
ProsUSA is the sister-company of Australian-based Professionals Real Estate Group.
“The traditional franchise fee model increases the broker's operating costs as their office and business grows, whereas our model addresses this quandary.”
ProsUSA, which has its headquarters in Scottsdale, Arizona, said it has had strong interest from 'member' candidates in Arizona, California, Colorado, Kansas, Missouri and Utah.
On September 1, ProsUSA signed its first franchise agreement with real estate brokerage Professionals Realty Group North County in Escondido, Calif., formerly called Realty Executives Executives Sensational Home Store.
“Our franchise model is a straightforward, pragmatic approach which offers real estate brokers, like broker/owner Brian Williams of Professionals in Escondido, California, a profitable solution to their business growth plan,” Melton said.
Professionals Real Estate Group chief executive officer Glyn Morgan said this was an ideal time to launch the new US-based operation.
“The U.S. may not see optimal real estate conditions like these again in our lifetime, and international investors understand today presents the greatest opportunity,” he said.
“The Professionals brand expansion into the U.S. comes at a time too where there are a lot of very good performers in real estate, who are disenchanted and want a new franchise model and culture.”