LANDMARK White Limited is looking to franchise some of its LandMark White Commercial operations through its subsidiary LMW Group Pty Ltd.
LMW company secretary Frank Hardiman expects the company will increase profitability and achieve a lower risk profile as a result of the move.
“Valuation revenues will be replaced by franchising fees and service revenues. LandMark White believes that overall growth will be enhanced and risks reduced by having valuation offices run by franchisee owners rather than employees,” he added.
Hardiman said LMW would enter into franchising agreements with new entities owned by senior staff.
“Those entities would purchase operational assets from existing LMW entities and would be paid to take over existing operational liabilities such as employee entitlements. Existing LMW entities would collect outstanding debtors and pay existing creditors,”
Whilst the franchise and service fees will be lower than the previous valuation fee income, there will be a much lower cost base.
The company would continue its current operations under the proposal, which Hardiman said will take some month to negotiate and implement.
The announcements comes two years after LandMark White Limited announced a joint venture with the Hegney Property Group, which created the national LMW Hegney brand.
Hegney has established franchises throughout Western Australia, South Australia and the Northern Territory, whilst LandMark White on the eastern seaboard has only established residential valuation franchises through LMW Group.
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