In 2019, Realogy franchisees closed approximately 1.4 million pages of home transactions. Most Irish estate agents focus so much on day-to-day operations that they have very little time to devote to research and development. Franchisors often draw attention to market trends and other developments when they operate for no other reason than in different markets across the country or around the world and because they are active in interbranch organisations. Real estate agency franchisors are generally leaders in their industries and employ professionals whose job description involves finding ways to do things better. They naturally attract consultants and others with new products and business ideas. This knowledge is usually freely transmitted to franchisees and is often introduced to the business strategies of the franchise network. On the other hand, many franchisees are often faced with new business opportunities that they also share with their colleagues and the franchisee. In fact, most franchise agreements require this exchange of ideas and information. Most franchises test new product ideas with franchisees before “rolling them out” by the rest of the franchise organization. This approach to innovation can often avoid mistakes, even if it doesn`t require any innovation or marketing plan to be successful. However, one of the most important advantages is certainly the possibility of resale, also known as an “exit strategy”. At some point, the owner of each business wants to resell or transfer ownership of their business. The company, which has an established reputation and brand, is often attractive to buyers by the franchisee, the existing franchisee and potential franchisees.
Since franchisors regularly recruit new franchisees, they can also identify someone who wants to invest in an existing business rather than a new franchise. Sometimes, the franchisee, who is considering an IPO of his shares, wishes to acquire a successful franchise business to be part of a public offering. This, combined with the fact that franchisees have contracts offering support, access to business systems and a recognized brand, can allow franchisees to participate in and obtain more revenue than if the business were not sold as part of a publicly traded company. The demand is likely higher for a business that operates as a franchisee of a successful franchising business than for a small business that has a single site and is perceived as a success, not only because of the reputation and capabilities of each owner. The first sign of franchising in any industry dates back to the 1850s with Isaac Singer, inventor of the Singer sewing machine. Looking for an efficient and affordable way to distribute his product for his business, the Singing Sewing Centre, Singer ran into problems that prevented his success. Its first problem was the lack of capital for the manufacture of its machines….