Hi folks. Today is question day for me.
I have an independent brokerage that is about 5 years old and getting to be pretty successful in our market niche. When we opened our own business, I had been working the foreclosure market for years. Now, it seems like the place to be.
Anywhooo, next week I am to fly out to visit with a franchise that does not have presence in my area. I have read through their offering package and see a lot of things that are great, but also a lot of things that are in need of negotiation.
Here's my big question: Do franchises negotiate or is it a take it / leave it deal?
For example, they seem to want 20% of the gross. I have agents that make 85-90% splits.
On their side, they have systems and national advertising, etc. (BTW - Their national ads are not run in my state right now)
On my side I have an established business that covers most of a state where they have no presence at all. It is a state that is near the top of the pack in foreclosures. We specialize in that and this franchise is breaking into it. We do commercial and they are breaking into that as well.
Are we in a position to negotiate at all?
Do you have questions about distressed assets, receivership or bankruptcy sales, auctions? Email me at rfk@gryphonusa.com and I'll try to answer it in an upcoming post.
Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com). The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Gryphon Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast.
United Country Gryphon Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17
