Are You Interested In Owning A Real Estate Brokerage Franchise? – Shelley Frody
On this episode of The Closing Table, we sat down with Shelley Frody!
To watch the full episode, check it out on YouTube below. In the meantime, here’s a summary of the conversation…
Here’s what you missed from Shelley Frody…
The conversation began with a fill-in-the-blank icebreaker on what makes a franchise more valuable, the most undermined value of being with a franchise. She then introduces herself outside of real estate as a wife and a mom with a passion for decorating and taking on various projects. Her husband is also involved in real estate, and together they run three brokerages under the umbrella of City2Shore National.
Their brokerages are primarily located in Michigan, with 12 locations, and they have one branch in Florida. Additionally, they are in talks with several individuals from other states, although bringing on franchisees is a time-consuming process. Despite the challenges, Shelley and her team are actively looking to expand their business to other states. During her introduction, Shelley also shares the interesting story behind the name of their brokerage.
When asked about what sets City2Shore apart from other real estate brokerage franchises in the market, Shelley explains their unique position. She noticed that larger companies had difficulty adapting their processes due to their size, whereas City2Shore, being relatively small when they started five years ago, had the flexibility to build their operations from the ground up. They were able to incorporate insights gained from studying their competition and focused on creating a strong foundation for their business. Shelley also mentions their company creed, which serves as an anchor for their operations, guiding their interactions with clients and shaping their company culture. This creed plays a vital role in their franchisee interviews and serves as a benchmark to safeguard their values as they continue to grow.
Shelley then elaborates on the various support and resources offered by City2Shore franchise to real estate brokers and associate brokers to help them succeed in their business. Firstly, she mentions the Real Estate Advantage Plan (REAP), a program they developed early on to assist franchisees in growing their business. Recognizing the challenges of attracting agents while managing a brokerage, City2Shore devised a system that incentivizes both franchisees and their hired agents to bring in more agents. Through REAP, agents can refer individuals they know, not only based on their affinity for the company but also to earn incentives such as a percentage of the brokers’ split. For instance, if the broker-agent split is 70-30, the broker sets aside funds from their split into REAP, which is then shared with the referring agent up to the cap set for the recruit. This creates an opportunity for agents to earn additional income, potentially amounting to $2,500-$3,000 per year, on top of their regular earnings. The cap resets on the recruit’s anniversary day, ensuring ongoing passive income for agents.
In addition, City2Shore has developed a proprietary software system to streamline the processing of closing packages received from real estate agents. Traditionally, this process could take up to 45 minutes to an hour to complete manually, involving tasks such as filing documents, tracking statistics, and disbursing payments. With their software, the process becomes significantly faster, requiring just ten minutes of data entry. Once entered, the transaction is closed and processed, and all parties involved, including the broker, the real estate agent, and any referral partners, receive their payments via ACH within 24-48 hours. This software saves brokers valuable time and allows administrative staff to focus on growth-related activities, contributing to the expansion of the brokerage.
Shelley also shares a personal experience that led to the development of a highly efficient system within their business. Shortly after starting their business, their youngest daughter was diagnosed with AML Leukemia. During this challenging time, Shelley had to step away from the business for a year to focus on her daughter’s treatment, while her husband, Steve, managed the business. To ensure smooth operations, Shelley’s sister, who was working as an admin but not licensed as an agent, filled in the gaps. Together, they devised a process that effectively managed the business during Shelley’s absence. The success of this process was evident the following year when Steve’s transactions increased from 30 to 110. Today, this system is available to all agents within the City2Shore franchise, providing them with a comprehensive agent support system that maximizes their time for more profitable activities. Whether new or experienced agents, they can benefit from the streamlined processes implemented by City2Shore.
Kevin then asked about the key advantages of joining a franchise model compared to an independent brokerage. Shelley acknowledges the value of independent brokerages, having started her career in one, and gives credit to the entrepreneurial mindset that drives such ventures. However, she highlights the advantages of partnering with a franchise model. By joining a franchise, real estate professionals gain access to a wealth of pre-established systems and tools, essentially handed to them on a silver platter. This streamlines the process of setting up their business and enables them to focus on growth, as everything necessary for success is already in place.
To assist franchisees in building their client base, Shelley explains that their franchise provides extensive marketing training. They have also developed a comprehensive online education platform accessible 24/7, even on mobile devices. This platform equips agents with various marketing materials tailored for use on social media and other channels. Additionally, the franchise has website partnerships to equip each agent, complete with built-in customer relationship management (CRM) tools.
When asked about examples of successful franchisees and achievements, Shelley shares a notable success story within their network, highlighting one of their very first franchisees who started with one location and expanded to three, focusing on the northern region. This franchisee’s growth is impressive, and their Manton office houses one of the company’s top-producing agents.
To stay up to date with industry trends and regulations, Shelley personally dedicates time to continuous learning, emphasizing the importance of staying updated with the latest industry trends and regulations. She is involved in coaching and receives coaching herself, which allows her to bring valuable knowledge back to their agents and franchisees. Moreover, the franchise organized its first convention the previous year, providing a platform for real estate knowledge sharing, life insights, and mindset training. The success of this event has led to plans for a second convention, demonstrating their commitment to keeping franchisees informed and engaged in ongoing development.
Next, Kevin inquired about their process for selecting new franchisees. Shelley outlines their thorough 8-step process for selecting new franchisees. She explains that selling franchises can be challenging, akin to searching for a needle in a haystack. First and foremost, potential candidates must have the desire to own a business. Additionally, they need to be licensed real estate brokers in order to qualify for franchise ownership. Aligning with City2Shore’s culture, morals, and ethics is also a crucial aspect of the selection process. Through interviews and conversations in the initial steps, they strive to understand candidates’ needs, personalities, and ethical standards. Following this, candidates are asked to complete an application to assess their financial capacity for the business.
Once they meet the financial requirements, they receive the franchise disclosure documents (FDC). Shelley highlights that franchise sales are regulated by the FDC, and candidates are given two weeks to review the document with their lawyer, ask questions, and suggest minor tweaks. The next step is the Discovery Day, held at the company’s headquarters in Hudsonville. During this event, candidates engage in a deep dive into City2Shore’s systems and tools, meet the staff, and further develop their relationship with the company. At the end of the process, it becomes a mutual decision whether to award the franchise to the candidate.
The conversation wraps up with Shelley sharing how she cultivates a sense of community and collaboration among franchisees where she emphasizes the utilization of technology. Regular meetings are conducted, bringing all franchisees together. Additionally, an annual convention is organized, providing a platform for networking and knowledge-sharing. Two virtual round table events are also held during the year, where all agents within the network are invited to participate in virtual educational sessions. These means ensure that best practices and lessons learned can be shared effectively across the entire franchise network, promoting a collaborative and supportive environment.
Check out Shelley Frody:
Facebook: https://www.facebook.com/shelley.frody
Facebook Business Page: https://www.facebook.com/City2Shore
Instagram: https://www.instagram.com/city2shorerealestate/
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