Cashing in on the publicity surrounding the share price of Purplebricks and recent entries into hybrid estate agency by Countrywide and Savills, another ‘part online, part traditional’ agency is now seeeking to expand by selling franchises from £5,000.
The Good Estate Agent says data from the franchise industry suggests typical franchise fees are around £14,600 - three times what it claims to offer for what it describes as “a lucrative, ready made business.”
The agency also offers a self-employed agent option for a monthly fee of £47.
The Kent-based firm provides what it describes as “full training, access to an online property and applicant management system, website, telephone and email support” and “takes care of the major brunt of the work such as the administration, Rightmove and Zoopla advertising as well as telephone and email enquiries” - leaving the franchise owner with all the time to go out and get the business.
Franchisees keep up to 90 per cent of income from initial sales and lettings.
“These are exciting times for the hybrid agency model. As an early adopter operating in this way since 2011 we know what it takes to succeed and that is quality local agents. For us it has always been about customer service and value and we don’t follow the ‘cheap fee’ model that will fail in a market downturn. It is not sustainable for an agent to earn £250 or less per sale and we make sure our agents are free to charge fees that are both fair to them and the customer” says managing director Rob Bryer, a former traditional estate agent and one-time business development consultant for a firm of IFAs.