FRANCHISING OF REAL ESTATE BUSINESSES - A CASE STUDY OF ERA SINGAPORE

Abstract

The real estate agency is a service industry that provides an important economic function between prospective buyer and seller of real estate. Franchising refers to an ability to standardize and replicate business practices and business formats which provide quality products and services to the consumer. Through franchising, new businesses are able to start up without large capital outlays. Franchising of real estate agency is almost unheard of in Asia but it has been around in the U.S. since the early 70s. The more established franchises include Century 21 and ERA, Inc. This study consists of two parts. The first part provides a discussion of what is essential to the development of a franchise system from the franchisor's perspective. In the second part, the author attempts to provide a practical application of the franchise concept. A case study is used to examine the prospect of franchising in real estate agency. The research methodology consists of interviews, observations and survey. The findings show that the prospect of real estate franchising is good both locally and overseas. Nevertheless, to operate a successful franchise, this study recommends that a formal planning process be adopted. This will in turn enhance the franchise's marketability.