Mar 17 2008
Getting involved in property in the New England area of the US, a region which comprises the states of Maine, New Hampshire, Vermont, Massachusetts, Connecticut and Rhode Island, could be an advantageous way for individuals to start up a real estate franchise.
There are a number of estate organisations operating in New England, including GMAC Real Estate. Many of these organisations operate by utilising the franchise model, which can benefit those groups who would like to get involved in the real estate market, but do not want to open themselves to the risk potential that starting up a business could bring.
People looking to get involved in the potentially lucrative New England freelancing model might like to set up a franchise business in their own locality. This will entail a franchise-operating estate agency granting a license to a franchisee to make use of their own trading package. With estate agencies sharing a percentage of the sale when selling a property, it is in their interest to have access to local markets. And with the franchisee potentially benefiting from the brand identity of the estate agent and its national advertising possibilities, it is not hard to see why the franchise partnership could be a successful one.
The New England property market might not be as buoyant as those levels experienced in the first part of the decade, with property prices predicted to experience a greater downturn than in other parts of the US during 2007. However, this does not necessarily mean that a real estate franchisee should suffer, with some commentators speculating that a buyer’s market is developing. According to Boston-based sales agent John Schwagerl: “The phones are ringing less. But when they ring, there’s more work involved with it,” reports Boston.com.
Setting up a franchise-run business could be an invaluable experience for an entrepreneur, but they will have to persuade the franchisor that they are capable of running a smoothly operating business. For an initial fee, a franchisor may provide a great deal of assistance to a real estate entrepreneur. However, the franchisee will have to demonstrate that they have established a carefully thought out initial capital plan. Having set up such a partnership, the franchisee could be set to benefit from the real estate group’s expertise and brand identity.
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