Franchise or Independent?

Amy - Good for you . Many more independent business owners need to take back the local market no matter what their business is. We need to stop the Big Box shops from wiping out the Mom & Pop shops that appeal more to the general public. My hats off to you !

From an agent's prospective...Although I now work with a franchise, I think I liked working in the independent office better. Just because franchise's promise all kinds of opportunities and deliver very little. There's only a few that have national TV ads, they all claim to offer the best training (which they charge an arm & leg for), and I'm paying 7% off the top just to use a name.

When it comes down to it, you and your agents are what brings you business and makes money. Not your company name.

Amy, I, too, have an independent brokerage.  Sometimes I miss the whole 'big office' atmosphere, but mostly I love the flexibility and control.  I never wanted to have to take whatever came in when I was doing floor time or was given to me by a manager, so what would I be paying for?  Yes, it would be great to hear ads on the radio steering business my way, but frankly, I like things the way they are! Have a wonderful day!

It's interesting that franchises seem to slowly be becoming a thing of the past.  Independent brokerages seem to be opening up all over NW Indiana.

Congratulations and best of luck.

In our market , many once-franchised offices are now operating "sans" franchise.  I'm told they have experienced little loss of business.  I don't know if a brand new independent would be successful right now, but an established brokerage could easily go independent.

I was "courted" as you say for a few years by "brands", but I think finally they got the message that I don't think I "need" them, nor do I want them.  My business model works for me.  I love being an independent and this is year 15.

Amy the respected broker/owner of the national franchise was asking the question perhaps as a measure of the value his national franchise brought to him. You are competition to him, with an advantage of not having to pay the never ending franchise fee.

And you are successful, congratulations! That doesn't just happen - it takes good planning, creative marketing, and some good business practices.

I wish you the best success going forward.

Kent Davis

Aloha Amy,

I have worked for both.  In some markets the name recognition of a good quality company is worth the franchise fee and or overhead.  In other Real Estate markets I firmly believe it just does not matter.  What matters is your professionalism, your marketing abilities for listings, good quality Buyer Representation and your internet skills.  A new Agent might may do well starting with a big franchise.  An experienced agent might do better with an independed company.

As you have stated Real Estate is Local.  The name of our independent Brokerage is Local Hawaii Real Estate.  All of our agents came from other Brokerages.  And yes, I opened the company as the market started to decline in 2007.  I pay a higher commission split than the Franchised Companies and in retun demand and get quality performance from the agents.  The last time I checked this year's sold stats, we were ranked 10^th out of 168 Realtor® Board Member Brokerages that reported sales for the total number of closings here on the Big Island of Hawaii.

It takes much work but I think it is worth being Independent. 

Stop by, visit and talk story at our office on the Big Island of Hawaii!

John Petrella, REALTOR®
ABR®, GRI, Principal Broker

Direct: 808.640.3953
Local@LocalHawaiiRealEstate.com

Local Hawaii Real Estate
Honesty • Integrity • Commitment

159 Keawe St., Suite 1
Hilo, Hawaii  96720

REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is Member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.

Hi Amy: Having been a RE/MAX franchisee for three years, followed by 5 years of independence, I can tell you that your assessment of your business is accurate. Anyone who tells you differently is trying to sell you something. For more opinion, click here: http://tinyurl.com/qs75zk

Best, Lawton Stokes, Achieve Realty, Wexford, PA

Amy,

I really enjoyed and totally appreciated this well informed blog! "Thank You," I am in the process of making a major decision in my practice. I've been a real estate professional for some years now and although my particular brokerage currently does not have franchise fees. and is actually a pleasure to be affiliated with---I'm kinda yearning for more. I am highly considering building my own real estate practice. It's a funny thing--I never thought that I would even entertain the decision to leave and start my own firm. But, that's where I'm headed. It's exciting just thinking about the entire ordeal. I personally believe if we can survive in this market: We Can Make It!  And FWIW: I am 100% sure that every one who bought with me or listed with me have done so solely because they felt comfortable with me.

Amy: Definitely! My mom use to tell me to "Never Say Never"---well needless to say: Mother does know best and I am still learning from mom!

Amy - YOU GO GIRL!  BRAVO!  That wonderful to hear that you chose to stay independent instead of going with a franchise.  Earlier this year, I made a change too (after 4.5 yrs with my previous broker).  While I too was courted by franchise agencies, I chose to go with a local, independent brokerage.  I'm so much happier and my only regret is that I didn't do it sooner.  Bigger is not always better and I'm glad I stayed relatively small (my current broker is still larger than my previous broker).