RE/MAX buys back major regional operation
RE/MAX International, a
major real estate franchise company, on Tuesday announced an agreement to
acquire RE/MAX of California & Hawaii, an independently owned regional
operation that serves 448 independently owned and operated franchise offices
and 10,270 sales associates.
Transfer of the regional operations to the Denver-based
company is expected to be concluded by mid-April.
It is the latest -- and largest -- in a series of regional
acquisitions for RE/MAX International. Regional operations provide advertising
such as television and billboard ads, and also conduct training and meetings
for local franchise offices.
In addition to the 12 company-owned regions, there are about
20 independently owned RE/MAX regions in the United States, and most of the
company's international regions are operated independently, said RE/MAX
chairman and co-founder Dave Liniger.
"I would anticipate that RE/MAX International will
continue to make acquisitions like this. All of our independent regions
understand that we're probably their exit strategy when it comes to retirement,"
Liniger said.
Decades ago, the company sold regional operations, called
master franchises, to help drive growth. The evolution of communications
technology allows for more centralization and operating efficiencies, he said,
which is why the company is working to buy these independent operations. "Most
of the franchisors have closed their regional offices," he said, and
RE/MAX, too, is following this trend in centralizing its operations.
Regional operations for franchise offices in the California
& Hawaii region will "operate pretty much the same way" that they
have before, he added.
RE/MAX International owns regional operations in Australia,
New Zealand, South Africa and will this year enter into a joint venture for
company operations in China. There will be 30 regions in China, he said. Other
RE/MAX international regions are independently operated, he said.
Adam Contos, who has served as regional director of the
RE/MAX Mountain States region since September 2005, has been named the new
regional director of the RE/MAX California & Hawaii region, effective
immediately.
Sid Syvertson and Steve Haselton, the owners of Spring
Realty who joined RE/MAX when they purchased the company's Southern California
region in 1982, later acquired and merged the Northern California and Hawaii
regions to form RE/MAX of California & Hawaii.
"In recent years, Syvertson and Haselton had limited
involvement in the daily operations of the region. For several years, numerous
discussions were conducted between the region owners and RE/MAX International
regarding a potential purchase of the region," RE/MAX officials stated in
an announcement.
"We feel confident that the leadership of RE/MAX
International is fully committed to the continued enhancement of the system,
the profitability of each broker/owner and continuing benefits for all RE/MAX
members," Syvertson said in a statement.
Copyright 2007 Inman News
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