Marketing
of Real Estate on a franchise basis has been established in the
United States of America to such an extent that three of the top
franchise networks conduct 50 to 60% of the business in that country.
In the Republic of South Africa, Real Estate franchising has been
increasing at a rapid rate. Due to the Real Estate upsurge and increased
franchising activity of the past few months, we will experience
a mushrooming of the Real Estate franchise industry in South Africa.
Gilbert Estates,
managed by Mr Clive Gilbert, who has a property background of over
30 years, are marketing franchises of the agency Gilbert Estates
at a nominal fee of R25 000 + VAT.
The
aim is to grow through expansion and turnover and not from the franchise
fees. Other franchises being offered vary in price from approximately
R100 000 – R 500 000 for restricted and limited areas.
In
addition, Gilbert Estates provides a money-back guarantee, which
has never been offered by any other franchisor to their franchisees
in Real Estate in South Africa. Should the franchisee’s commission
income be less than R50 000 after the first 12 months of trading,
the franchisee has the option to cancel the franchise agreement
and obtain repayment 90 % of the franchise fee. This option is available
to all franchisees who have paid their franchise fees in full, fulfilled
all their obligations in terms of the franchise agreement and invested
at least R2 500 per month in advertising over this 12 month period.
(Such option is to be exercised in writing by the franchisee within
30 days of expiration of the first 12 months of trading.)
From
statistics available, there is a tremendous advantage in being part
of a franchise group and ratios of successes of franchise businesses
against privately-run businesses is 10 – 1 in favour of franchisees.
The reason for this is mainly due to the selection, training and
continuous monitoring of progress of franchisees, which gives a
tremendous advantage over small, privately-run businesses.
Surveys
in the USA have shown that franchisees in Real Estate are the most
satisfied group in the franchising industry. The benefits of national
advertising, referrals and sophisticated training and marketing
methods have resulted in financial benefits of an unprecedented
scale for franchisees.
Gilbert
Estates are creating a network of small, well-organised franchisees
throughout the Republic of South Africa.
A
franchisee will be able to operate from a small office or his/her
residence and thus cut operating costs radically, whilst having
the benefits of the image of a large group. Gilbert Estates will
attend to all administration and the franchisee will be able to
concentrate on sales in the area of their preference, where their
personal knowledge of that area will result in the public obtaining
excellent service from a highly-motivated and well-trained professional
Estate Agent running his/her own business.
A full training
programme is offered and inexperienced persons with a general business
background, plus motivation, should have no difficulty in creating
a successful career for themselves. |