“I was from the start confident, because this year enquiries about, and applications for, new franchises by post, email and telephone have risen by just over 25% month-by-month,” said Tony Clarke, MD of Rawson Properties.
This, said Clarke, is a clear indication that confidence in the property sector is on a sharp rise - and it probably also heralds a satisfactory increase in residential property prices over the next six months.
Rawson Properties was one of the very few big brand estate agencies to achieve good franchise sales throughout 2009 when 26 new franchises were sold between January and December.
This year, however, said Clarke, the level of enquiries is so far up on that of last year that Rawson Properties now believe that they should have no difficulty in being able to achieve a target figure of 90 new franchises being added to their national footprint.
As most franchises are expected to have at least six agents and an administrator, this means that over 600 new property staff will be added to Rawson Properties’ total by the end of 2010.
Clarke added that Rawson Properties are also selling franchises for their new auction and letting divisions. Here, too, he said, the uptake has been “surprisingly” good.
“Rawson Properties is in the only big brand estate agency group to offer a separate letting franchise and this is attracting considerable interest because this type of operation is one that many applicants prefer and because these franchises are not expensive.”
Asked to give a price range on the agency franchises he is selling, Clarke said that this would be totally misleading because each franchise is tailored to suit the buyer, his territory, his past experience and his anticipated growth path.
“Two factors have however become clear. The calibre of those entering the industry as franchisees is now higher than ever before and there is a growing perception that it is now essential to belong to a big brand group if you wish to ‘cut it’ in the property sector. Independent operators find that they lack credibility, backup support and a national referral network.”
The Rawson Properties’ training programme, said Clarke, does ensure that even those new to the property industry and to being franchise principals can obtain the qualifications that are now demanded by the Institute of Estate Agents of South Africa (IEASA).
In addition to the obligatory NQF4 and NQF5 qualifications (the latter for franchise principals) required by the Estate Agency Affairs Board (EAAB), Rawson’s also give ongoing training in a variety of skills such as negotiation, client liaison and personal improvement.
For more information contact Tony Clarke on 021 658 7100 or send an email.
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