Leading Real Estate Brand Forecasts Failure of High Overhead Franchises

Paul Davies, CEO and Founder of One Agency Real Estate Group, has forecast the failure of high overhead businesses and particularly franchises as many areas head into uncertain market conditions and economic times.

Speaking from the 300 strong Australian and New Zealand­wide group’s headquarters in Sydney, Mr. Davies predicted that high overhead businesses will struggle in a slowing property market, where the rate of price growth for residential properties has diminished in recent months, less turnover of properties, and pressure on maintaining agents fee levels as competition to survive increases.

“Franchise offices in particular have added overheads, and may have difficulty maintaining the narrow profit margins, creating added stress to meet their high overheads” he says. “I believe that many offices will close.

The first will be ones with the slimmest profit margins, gradually followed by many others. I would go as far as to suggest, some franchises groups, that struggle to provide a fair exchange for fees, where their franchisees cannot justify the costs, will become irrelevant and cease to exist.”

“The global trend is for better and cheaper products and services, and this cannot and will not be isolated from the Real Estate franchise environment. Massive change is inevitable across all sectors of all economies.”


One Agency is a major disrupter to the real estate franchise industry, by focusing on providing agents with up to minute marketing and branding within the framework of low cost business operating options. This clever business model has been designed to deliver optimum profitability for agents in all market conditions. The model provides an environment for agents that is sustainable through the volatile ups and downs of theproperty market, and the best protection from the variations in income which result, and are inevitable when operating a real estate business.

“We attract very motivated agents to our brand,” says Mr Davies, Founder & CEO of One Agency, “some members are new to business ownership and some are already established and bring their franchise agency to us seeking change. Business owners want relief from franchise constraints and costs, which consume profitability and increase the risk of survivability.”

One Agency business owners are able to react much quicker and in a far more autonomous manner than those who own traditional real estate franchise businesses.

As a result of the sensibility of the model and value packed options, One Agency Real Estate group, has become Australasia’s fastest growing brand, steadily gaining popularity since opening its doors in 2008. The group will administer 160 offices across Australia and New Zealand by the end of June this year, placing the brand firmly within the top 10 networks in Australia, and all in record time against other groups that have beenaround for many decades.

Mr. Davies knew, after more than 30 years experience as a real estate business owner, that there was a better way, and launched this unique business model 8 years ago, fitting the need for agents seeking independence and a far better deal, as well as franchise and independent agencies seeking relief from costs and a corporate banner. He continues to help create profitable, sustainable and enjoyable businesses, and brings his personal guidance and wealth of experience to all members.

For more information, high resolution images, or to arrange an interview with One Agency’s Founder & CEO,

Visit www.oneagencygroup.com.au  please contact:

Susanne Mitchell Real Media People|0403 395 300 | susanne@realmediapeople.com.au

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