Two of Australia’s highest-selling agents have opened the first in a series of new offices under a half-branch, half-franchise model.
Julian Hasemer, who placed 70th in this year’s Top 100 Agents ranking, and Brad Caldwell-Eyles, who placed 100th, have decided to expand 1st City Hasemer & Caldwell-Eyles under what they call a ‘branchise’ model.
Head office, which is based in the Sydney suburb of Double Bay, will own 50.2 per cent of the new Woollahra/Paddington office. Its principals, John Anderson and Simon Doak, will control 49.8 per cent and will also be responsible for the same share of operational costs.
Mr Caldwell-Eyles told REB that the ‘branchise’ model will allow head office to retain control, while also making it easier for strong agents to step up to principal.
Mr Anderson and Mr Doak haven’t had to buy into the business, because 1st City Anderson & Doak, as it’s been called, is a new entity. Nor have they had to bother with all the planning.
“We have virtually handed them a turnkey new office, and then our administration department operates the bulk of their back-end systems, including property management,” Mr Caldwell-Eyles said.
“John and Simon and their team are able to hit the ground running and commence listing and selling from day one. All the while, we remain their business partners in 1st City Anderson & Doak.
“We leverage from their reputations and experience, and they benefit from having terrific equity, reduced exposure to set-up costs, vastly more efficient operational procedures and management support – all under our quality brand.”
Mr Anderson and Mr Doak have gained access to a fully operational management department, but don’t have to pay a cent while they don’t have any managements.
As they start winning business, they will contribute according to their share of the group’s total managements – so they will pay 10 per cent of the costs if they have 10 per cent of the managements.
Mr Caldwell-Eyles said head office plans to open two more sites in 2016 and then another two in 2017, and will then reassess. All those new offices will be within a 15-kilometre radius.
As the group expands, Mr Caldwell-Eyles plans to step back from sales to focus more on management.
[Related: Stepping up from agent to principal]