Century 21 to Offer Franchise Deals in Britain
In its first international expansion move in four years, Century 21 Real Estate said it plans to start in July the franchising of real estate brokerage firms in Britain.
Century 21, based in Irvine, is establishing a master franchiser in Britain with a goal of attracting 400 to 500 member franchises within three years, Gary Cooper, the firm’s executive vice president, said Friday.
He declined to say how much money the company is investing in the expansion but said it plans to build a staff of 40 to 50 people in London by the end of the year to market the program in England, Ireland, Scotland and Wales.
The move into Britain is the company’s first international expansion since Century 21 of Japan was established in 1983. The real estate brokerage company also has franchises in Canada and Guam.
Cooper said Century 21 will offer British franchisees a variety of services, including employee recruiting and training and extensive advertising, to help them survive competition from large broker networks.
Big Firms Expanding
Following a trend that began in the United States in the mid-1970s, Cooper said, financial institutions and insurance companies for the past 18 months have begun to buy small brokerage firms in Britain.
Five years ago, he said, the 10 largest British real estate brokerages ran 400 offices and accounted for less than 1% of the nation’s transactions. By contrast, he said, the 10 largest brokerages there now own more than 2,000 offices and claim about 20% of the nation’s real estate business.
The new networks of brokerage offices in Britain, Cooper said, provide a ready market for the parent companies’ products, such as home insurance and mortgage financing.
Cooper said Metropolitan Life Insurance, which owns Century 21, also intends to market insurance and mortgages to home buyers through its British franchises. But he added that British brokerages, by paying a fee to become Century 21 franchises, will receive those products while maintaining their independence.
Cooper said international expansion has been “a longstanding objective” of Century 21. He said he expects the company to establish a master franchiser to serve France, Belgium, the Netherlands, Luxembourg and Switzerland by the end of the year.
