Factor 4 – Traditional Models
March 24, 2009 by e-Partner · Leave a Comment
Throughout the 60’s, 70’s and 80’s the modern real estate franchise machine emerged creating a new service and marketing partner for traditional brokerage companies throughout the United States.
Century 21, ERA, Coldwell Banker, Realty World and in the late 80’s and early 90’s Prudential entered the crowded field fueled by their acquisition of Merrill Lynch’s brokerage houses.
The early franchisors flourished as they attracted brokerage firms to their franchise promises associated with brand recognition, marketing tools, advertisement, national relocation, referrals, training and business support services. In exchange for their franchise services they were paid handsomely, usually extracting a fee of 6-8% fee from all gross brokerage receipts.
Inherent within the franchisor’s model is the concept of territorialism, the promise or illusion of exclusive access market presence, tools, economies of scale and owner support that come from association with a large national entity.
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