Professionals Realty Group USA (ProsUSA), a national real estate franchising company, has launched a new franchise business model in the United States that has been successful overseas for nearly 35 years – a fixed-cost “membership” organization, the company announced. Headquartered in Scottsdale, AZ, ProsUSA officially launched with the Federal Trade Commission FDD registration on June 17, 2011.
“The fee models generally in use in the U.S. have contributed to a negative impact on real estate broker profitability and therefore viability,” says Glenn Melton, ProsUSA president. “The traditional franchise fee model increases the broker’s operating costs as their office and business grows, whereas our model addresses this quandary.”
ProsUSA is the sister-company of one of the most recognizable real estate brands in Australia, Australian-based Professionals Real Estate Group, which was founded in 1976 and has over 350 offices in Australia, New Zealand, Indonesia, Thailand, Papua New Guinea, Vanuatu, Fiji and, most recently, the United States.
Professionals Real Estate Group Chief Executive Officer Glyn Morgan spent four years researching the U.S. real estate market. “The U.S. may not see optimal real estate conditions like these again in our lifetime, and international investors understand today presents the greatest opportunity,” states Morgan. “The Professionals brand expansion into the U.S. comes at a time too where there are a lot of very good performers in real estate, who are disenchanted and want a new franchise model and culture.”
According to Melton, ProsUSA has already been well received across the United States. “Specifically, we are finding strong franchise ‘member’ candidates in Arizona, California, Colorado, Kansas, Missouri and Utah.”
On September 1, ProsUSA signed its first franchise agreement with real estate brokerage Professionals Realty Group North County in Escondido, Calif., formerly a Realty Executives franchise.
“Our franchise model is a straightforward, pragmatic approach which offers real estate brokers, like Broker/Owner Brian Williams of Professionals in Escondido, California, a profitable solution to their business growth plan,” Melton states.
“The Professionals’ system means that when you do well, we give you a pat on the back rather than having a hand in your pocket,” adds Morgan.
ProsUSA’s fixed-cost membership franchise model includes a one-time flat initiation fee and a flat monthly fee based on protected territories; with the tools, systems, technology and training all inclusive. A percentage of the entire company’s profits are delivered back annually to the franchise member/owners to be used in accordance with the direction of the member advisory council.
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