Fixed-cost franchise model will win over US agents

Fixed-cost franchise model will win over US agents

10 October 2011 by Staff Reporter 0 comments

Staff Reporter

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.”

Staff Reporter

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.”

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
REVEALED: The 10 best agents in Australia for 2017

For the first time ever, the top 10 agents in the REB Top 100 Agents ranking are revealed in this exclusive podcast. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
Do you have an industry update?