The Death of the Franchise???

The comments are interesting.  I feel that agents are realizing that they are the asset to the company and want more.  The brokerage needs to provide more to help them grow their income, their business, their team, there market share, their knowledge... 

Smaller companies have challenges with the time it takes to do this, and often fall short.  This leads to the reasons why franchises are growing fast, and more and more are joining them. 

I do feel that Real Estate is a local business driven by local agents, so I can see local pockets across the country that can see indies growing faster then franchises.

Great post!

Using the same comment I made in an earlier post on the subject...

I used to be both an agent and a team leader at KW.  Paying $31,000 a year for me was just crazy for what I got in return, which wasn't much.  If I were paying 1/3 of that number, I would have stayed.  Business is business, and I made a smart business decision for me.  I can do a lot with that $24k savings :-)

Scott,

Its all about marketing and name recognition. They are not going away, they are actually learning some new tricks and becoming stronger and better.

-Brent

I think it's like every thing in real estate right now....in transition. When I got into the business it was all about touting the company. Then personal marketing became the hot button (what didn't have an agent's photo on it?). Then that shifted back a bit and now many are moving in the independent direction again. As a RE/MAX franchise owner, I like to think we have the best of both worlds. International and National brand awareness with low fees and a culture which promotes the independence of each agent's business.

REO agents in my area are still affiliated with big brokerages in some instances. The listings are limited though to 30 listings per agent per servicer. 

The difference I think you're seeing is that many agents have gone out on their own and opened their own brokerage because of the REO business. What will those agents do when REO business ends? Hopefully they are saving their pennies. Maybe they will exit the business. After all, REO is a short term phenomenon.

Our area is dominated by large franchises.  The smaller companies continue to disappear.  Even RE/Max is struggling in our area.

The REO market has shifted many listings to small independent Brokerages.

The massive REO boom won't last forever. 

This is not the "death of the franchise".  Just part of constant change.

It's in any entrepreneurial spirit to be on his or her own, and with today's technology, it can be done better and more efficient than ever to play as well as the big dogs.

I remember mega-franchise firms trying to move into the luxury market four or five years ago when times were good.  Now that the high end has collapsed in many areas, they've lost interest and are quietly pulling out.

We have a lot of small independents, but we also still have a lot of franchises around. 

I opened my own company this year....the fees at Remax were ridiculous.  I saw no benefit from being there so I opened my own and haven't looked back.  Boutique companies that can carve a niche for themselves are the way to go, I believe.  If all of my agents took a hike tomorrow, I'd be fine.  My web presence is amazing...I've got the leads and that's what will save me, versus larger companies that are depending on others to keep their doors open.

The family-owned firm I work for has been growing and expanding like crazy even through the downturn and have expanded to four states now.  They are gaining share over the large franchise firms.  Our firm doesn't deal with REO's, so the growth isn't from that.  I could never go to work for a large franchise firm.  It depresses me just to think about it.  If I made a move it would be to start my own business.

It is much easier to be successful as an independent as changing with market conditions can be down instantly as opposed to waiting on a large corporation to tell you what to do.  The large firms will not go away, but there market share will be damaged for good.

In October my broker dropped his Century 21 franchise after 28 years. At first we were worried, but then we realized we were not getting very much business from corporate anyway. Our phones are still ringing. I think I would rather be will a franchise though.

I look forward to this ongoing dialog about franchising ...

Scott, Big & small, independent & franchise are doing well here in NJ and also dying on the vine, depending on the quality of Broker & agents in any particular office...

I dont see that in my market, I see the opposite, as things get tougher small guys get squeezed out and franchises grow.  the internet has certainly leveled the playing field and what has happened is franchises are having to offer more value now

I started with the largest C-21 in Orange County, Ca back in the 1980's.   I think they had 8-10 offices at the time.  A few years later they were out of business.  The talent to manage a business is in the individual owners/managers. A "nationsl franchise does not turn average mangement talent into great mangement talent.  I don't think changes  in the maket means "national franchises" are going away.