Field Guide to Franchises vs. Independent Firms
(Updated August 2009)
According to The 2009 National Association of REALTORS® Member Profile 51 percent of all REALTORS® are affiliated with a independent, non-franchised company. In fact most Realtors are likely to be affiliated with an independent, non-franchised company.The decision to join a franchise or an independent firm can be confusing. The pros and cons of each option are examined in this Field Guide. (D. Winchester, Information Specialist)
Firm Affiliation of REALTORS®
- Half of REALTORS® are affiliated with an independent, non-franchised
company. - While brokers and broker associates are most often with an independent,
non-franchised company, sales agents are more evenly split between
independent non-franchised and franchised companies.
Source: The 2009 National Association of REALTORS® Member Profile
Franchises...
2007 Franchise Report: Affiliation up, (REALTOR® Magazine, Sept.. 2007).
The real estate franchise decision: A profile of some of the largest, (About.com).
Top 10 reasons for buying a franchise, (Entrepreneur.com, Dec. 2007).
Frequently asked questions about franchising, (Franchising World Jun. 2005). Q
Advantages & challenges of franchising, (Franchising World, Jun. 2005). Q
Which should you choose -- a national or local firm?, (Realty Times, Nov. 2004).
Franchise affiliation: Eyes wide open, (REALTOR® Magazine, Aug. 2004).
To affiliate or not affiliate; What franchise is right for you?, (REALTOR® Magazine Online, Oct. 2002).
Merger of independents bucks buyout trend, (Realty Times, Feb. 5, 2007).
Coaching gives boost to business venture, (REALTOR® Magazine Online, Mar. 2005).
The galvanization of the independent broker, (Realty Times, Jan. 2003).
Small firms dominate real estate industry, survey shows, (Realty Times, Apr. 2002).
How do you define 'independent'?, (REALTOR® Magazine, Sep. 1999).
Franchising in residential brokerage, (Journal of Real Estate Research, 2006). Q
Factors associated with survival of new Ohio Realtor® Associates , (Journal of Real Estate Practice and Education, 2003). Q
Residential real estate brokerage efficiency and the implications of franchising: A Bayesian approach, (Real Estate Economics, Fall 1999). Q
The efficiency of franchising in the residential real estate brokerage market, (Journal of Consumer Marketing, 1998). Q
Measuring the efficiency of residential real estate brokerage firms, (Journal of Real Estate Research, 1998).
Determinants of real estate licensee income, (Journal of Real Estate Research, 1997). Q
Franchise vs. New Business, (CCH Business Owner's Toolkit, 2005).
Franchise and Business Opportunities, (Federal Trade Commission, 2003).
eBooks & Other Resources
Books, Videos, Research Reports & More
The resources below are available for loan through Information Central. Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call Information Central at 800.874.6500 for assistance.
Real Estate Confronts the Future, (Mason, OH: South-Western, 2005). HD 1375 SWCR
Business lessons for entrepreneurs: 35 things I learned before the age of thirty, (Mason, OH: South-Western, 2003). HD 2346 C89
Field Guides & More
These Field Guides and other resources in the Virtual Library may also be of interest:
Field Guide to Opening a Real Estate Brokerage
Field Guide to Appraisal of Real Estate Offices
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The inclusion of links on this Field Guide does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked to this Field Guide complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.
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