Inman News just wrote about a recent bankruptcy filed by national franchiser Help-U-Sell, after a group of regional operators filed an involuntary petition for bankruptcy.
It is not the first time the Help-U-Sell franchise company, Realty Information Systems Inc., has been involved in a bankruptcy proceeding. The company went through the same process during the last major downturn in the housing market in the mid-1990s, and emerged during the latest up-cycle as one of the fastest-growing real estate franchises before this latest plunge. It's pretty obvious that these flat-fee service companies are able to thrive in a strong market, when marketing costs are low, and properties sell quickly. When longer service and advertising expense are needed, this concept doesn't work.
A combination of an inflexible management team and a slow market seems to be the cause of their difficulties, and this time they may not bounce back.
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