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October 26, 2014

Realty One Becomes a Franchisor

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Realty One Becomes a Franchisor

In an effort to expand nationwide, Realty One Group Inc., a Las Vegas-based brokerage, is getting into the franchising business. The brokerage recently welcomed its first franchisee—Realty One Group Southwest in Temecula, Calif.—under its umbrella.

Within the next couple of years, Realty One Group hopes to have at least 100 franchise offices nationwide, including in the 50 largest U.S. metros. The brokerage also hopes by 2013 to become a publicly traded company, CEO Kuba Jewgieniew told Inman News. 

Realty One Group currently operates 15 brokerage offices in Arizona, Nevada, and Southern California. It boasts about 4,000 agents. Last year, the company was named by Real Trends as the 11th largest brokerage in the country in terms of transaction side volume (which stood at 15,475). 

In August, the company announced it would develop a franchise system. 

Differentiation is key, Jewgieniew told Inman News. For example, Realty One Group charges only $1 in upfront fees to become a franchisee. Eventually, to become fully established as a franchisee, the fee ranges from $28,251 to $195,001. Another point of differentiation with Realty One Group, Jewgieniew notes: “Agents aren’t charged transaction fees that scale with the size of transaction amounts.” There are no annual royalty fees. Instead, agents pay a flat monthly fee of $100—with 75 percent of it going to the franchisee and the remaining 25 percent to Realty One Group. 

"Our income is all about agent count and unit-closed transaction volume," Jewgieniew told Inman News. 

Source: “Realty One Group Now a Franchisor,” Inman News (Oct. 26, 2012)