Franchise development and business brokerage companies are seeking franchises with proven business models to recommend to their clients. Franchise operations that can weather changing economic conditions, offer protected territories, and structure royalty arrangements to promote franchisee success are few and far between.
Real estate franchises are particularly vulnerable to changing interest rates and royalty arrangements that limit franchisee earnings and growth. A franchise developer is more likely to recommend a full-service realty franchise with a built-in hedge against economic downturns, and support for franchisees to earn and grow in all economic environments.
Franchises continue to be the fastest-growing category of owner-operated businesses, and franchise development companies are scouting franchises more carefully than ever, before recommending them to clients. Finding the clear winners, with proven business models and positive results already on the books, is what it takes to match a franchise opportunity with a demanding investor.
Top tier franchises are in “hot” industries, but with a business model that weathers changing economic conditions over the long term. Protected territories are a “must,” along with franchisee training and support, and a workable royalty structure, free of unnecessary limitations on franchisee earnings and growth.
Zack Alawi, of the Franchise Development Centre, says that franchise opportunities that “have it all” are few and far between. “My clients can afford to wait for the right investment, and my reputation in the industry depends on successful and happy clients. I personally check out a franchise before recommending it, because I’m looking for a win-win situation with a business model designed to last for years to come. I need to see it to believe it.”
Alawi has just returned from South Florida, the home of Rent 1 & Sale 1 Realty, one of the rare companies that meets and exceeds all of his requirements. “Rent 1 & Sale 1 Realty has everything I’m looking for in a franchise,” he says. “With a proven business model that’s been working as planned for nearly twenty years, a built-in hedge against changing economic conditions, exclusive territories, an extraordinary level of franchisee support, and a royalty arrangement that links performance with franchisee success and growth, this is a recommendation I can really put my heart into.”
Alawi is so excited about Rent 1 & Sale 1 Realty that he’s working with them on launching a national campaign to match the real estate franchise with the prospective franchisees at the top of his client list. “Rent 1 & Sale 1 brings so many advantages to the table that I want to put my clients who will appreciate them in touch, right away.”
Noting that real estate shows every sign of maintaining upward growth in spite of the current market correction, Alawi feels that the Rent 1 & Sale 1 Realty model goes further toward promoting franchisee success than anything he’s seen. “At Rent 1 & Sale 1 Realty, I found demonstrated commitments to franchisee success.
They offer one of the largest exclusive territories available, a state-of-the-art website with substantial franchisee support, and in-house software for transaction tracking that minimizes back-office time and maximizes valuable information the franchisee can use profitably. What’s more, the ability to serve buyers, sellers, landlords, and renters with both sales and rental services means that this franchise won’t suffer with fluctuating interest rates.”
Rent 1 & Sale 1 also provides a capped royalty arrangement, so franchisees meet their royalty obligations sooner. This gives them room to earn and grow, and to recruit associates looking for unfettered access to high earnings based on performance.
“This is the win-win approach to franchising that I want for my clients,” Alawi says. “It’s exciting to have found the next big thing in the Real Estate industry, and to work with a franchisor who has truly designed an offering with franchisee success in mind.”