Demonstrating their confidence in the franchise model and the property market, Belvoir franchisees are on target to growing significantly in 2018
From opening new offices around the country to acquiring Northwood, Belvoir has spent the last few years establishing itself as Britain’s biggest property franchise. And the franchisor is making no secret that its franchisees are key to its continuous growth. As a matter of fact, Belvoir just announced that four franchisees’ significant investments have made the network's expected revenue for 2018 jump by £2m.
For starters, the franchisee who owns sites in Hitchin and Welwyn Garden City has used its own money to buy the neighbouring St Albans territory, amounting to 624 additional properties. Not only will this generate almost £1m of annual network revenue but will also increase group management service fees by £400,000 in the first six years of ownership, the latter of which is Belvoir’s main source of revenue from franchisees.
Additionally, three franchisees in Derby West, Hendon and Corby have acquired portfolios too, with £193,000 of financial support from Belvoir. These additions will result in network revenue of £1m and £122,000 of management service fees annually. Even more impressively, these four deals means Belvoir's 2018 franchisee acquisitions already equate to 75% of the total value of the ones made in 2017. Last year saw Belvoir complete 23 similar deals, adding £3.4m to the network's revenue.
Commenting on the news, Dorian Gonsalves, CEO of Belvoir, said: “Our assisted acquisitions pipeline remains strong and the board has set itself the target of doubling the value of such franchisee portfolio acquisitions again in 2018. Our ability to capitalise on the consolidation in our sector is a testament to the Belvoir Group acquisitions team which identify and facilitate such deal opportunities and harness the entrepreneurial spirit of our franchisees.”
Given how backing its franchisees to make better deals have already set Belvoir on the road to making 2018 a solid period for the business, it just proves how much franchisors can profit from playing the home field.