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Franchises are trying to control organized real estate

Re: Franchisors push for change in Montreal, April REM

Once again, the classic “tale wagging the dog” syndrome rears its ugly head. Franchisors are again attempting to control the real estate market on a provincial level. This comes after attempts to do the same on a national level, and also attempts throughout the industry at board levels constantly.

I would remind Realtors that boards, provincial organizations and our national body were established by individual brokers and agents as a co-operative in order to better market our product.

I agree that certain services offered by our local boards, provincial associations and the national body are being duplicated, as are franchise fees for services. As Realtors, we are asked to pay more on an individual basis to each of these organizations, as well as to the franchisors with whom a large majority of us are affiliated.

The question to be asked is what services are really needed and who best can provide these services in the most cost effective manner to the Realtor in the field?

My opinion is that each of the franchisors would like to control the market. One only has to look at the advertising that appears in REM to see these attempts. You don’t see Joe Blow Realty with full-page colour spreads.

Also in the current issue is the article regarding the Royal LePage Franchise Fund, showing a quarterly “profit” of $980,000. I submit to you that $2.2 million annually was just gained by Royal LePage, Franchisor, by assessing its 9,000+ agents $20/month for “new marketing material and Royal LePage University” courses, all of which are readily available through our provincial and national associations. In other words, we are asked to pay twice for the “same” service.

One should not lose the right to choose what is best for each and every one of us on an individual basis, not what is mandated by the corporate giants.

 

Mel Inch

Associate Broker (Independent Contractor)

Royal LePage 1st Sarnia Real Estate Services Inc.

Sarnia, Ont.

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