A franchise business which launched almost a year ago after a rebrand says it is signing up new recruits at the rate of one a week.
Estate agency and lettings business EweMove, based in Halifax, tempts franchisees by saying they can build a £1m business and achieve more than £100,000 net profit a year.
The firm says it now has over 40 franchisees – almost none of whom have any previous sales or lettings experience.
Darren Harley, franchise success coach, said: “We had some people from the original business [National Property Group’s lettings business] who stayed with us and did have some experience.
“But of our franchisees since, only one has a background in estate agency.”
He said this was unlikely to change, as the emphasis was on recruiting franchisees who can build successful businesses, rather than people with a track record in home sales and lettings.
He said that the large majority of the EweMove franchisees work from their own homes and are based all over the UK, including Belfast, Wales and Scotland.
“Most of the spread is from York down to the south coast, and most of the franchisees are in the midlands,” said Harley, a former associate director with Savills.
The franchisees pay per size of territory, equating to £12,950 for a patch with 20,000 households. The price includes training, IT systems, centralised accounting and reception services, membership of Rightmove and Zoopla, and a starter pack including boards – which depict bright green sheep.
Franchisees are recruited via ‘discovery events’, currently being held about every two weeks, which attract up to 40 people. There are follow-up meetings on a one to one basis at the ‘Halifax pen’, which is how EweMove describes its head office.
Harley said franchise inquiries are strong, and included a recent one from Kensington where any would-be EweMove franchise would be up against the likes of Foxtons and Knight Frank. He said that would not matter, given that EweMove’s chief offering is high levels of personal service, which he said goes down well in any market.
Franchisees offer both sales and lettings, and a ‘Rent Now, Buy Later’ service.
This allows tenants five to ten years to buy their rental home, with them paying into what Harley says is effectively a trust fund alongside their rent which will become their deposit.
Harley said the scheme is proving very popular, but said it did require commitment from the tenant as if they decided not to commit to a purchase, they would forfeit their deposit – which goes, he said, to the landlord.
EweMove, which currently has a total of 145 properties listed on Rightmove, describes itself as an ARLA licensed agent and also a SAFEagent member. Harley said that membership of both has been taken out by National Property Group’s NPG Lettings Ltd, which rebranded to EweMove since last June.
Sellers are currently tied in to 77-day contracts with EweMove, but Harley says the firm is considering introducing a ‘free sale’ offer if the property remains unsold after this time.
I wonder how Foxtons and Knight Frank feel about the inference of the following? "Harley said franchise inquiries are strong, and included a recent one from Kensington where any would-be EweMove franchise would be up against the likes of Foxtons and Knight Frank. He said that would not matter, given that EweMove’s chief offering is high levels of personal service."
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To be frank (or Knight), they wouldn't give too hoots – because we're not established in London to any degree. However – there is a massive market out there – and a very, very small piece of a gigantic pie, still makes for a very lucrative business – That's why there are thousands of successful Estate and Letting Agents all over the UK. Competition is wonderful and should be embraced – it drives up standards for consumers and provides more choice.
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"Buyers [correction, Sellers] are currently tied in to 77-day contracts with EweMove, but Harley says the firm is considering introducing a ‘free sale’ offer if the property remains unsold after this time."
Ahhh, great!! Now I can raise here on EYE what I consider to be this company's misleading claims and advertising on the subject.
From their website:
"NEW LISTING 77 day Sale Cast Iron Guarantee
We’re so confident that EweMove.com represents the best solution for selling your home in 77 days or less, that we’re prepared to paste a cast iron guarantee on it."
The "cast iron guarantee"? Simply that when the property fails to sell, the customer is free to walk away without charge.
BIG DEAL.
Might just have to turn up at one of their "discovery events". I haven't had a good laugh for ages…
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Problem is, no one reports this kind of claim to the ASA.
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This is what we offer.
Customers can cancel at any time in the first 14 days – so we're not locking in for a long period if we are doing a terrible job from the start.
If we don't sell a house in our promised period, we sell for free. Hardly 'ripping people off'. All of which is made clear at the start.
Compare this to the 'norm' – We lock you in – so if you do a bad job, it's tough. And if we sell it after 2 years, we'll still charge…
They only complaints we've ever had are from our competitors – because customers love the fact that we're prepared to put our money where our mouths are.
Sorry to be blunt – it's the Yorkshire man in me 🙂
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Oh, dear – what a response.
"Customers can cancel at any time in the first 14 days…"
So can ANY customer with ANY Agency. It's called a cooling-off period. It's the Law.
"If we don't sell a house in our promised period, we sell for free. "
NO YOU DON'T. At least, not yet, according to both the article above, and to your website. Check out your own T's & C's before commenting, Mr Ackroyd.
"All of which is made clear at the start."
"The start" being WHEN, exactly? Certainly not by reading your website – which I would argue would be "the start" of a prospective seller's search for an Agent. ESPECIALLY YOURS – as there is no other tangible way for your Agency to be found, is there?
And THAT is how to be blunt. Yorkshiremen are simply unqualified Geordies. 😉
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Hi PeeBee
A 14 day cooling off period is more than the law requires. I'd refer you to my previous posting, which should help.
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And I refer you to MY comments further down the page, Mr Harley – for which I look forward to your response.
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Can anyone tell me why someone pays a franchise company for an area to trade in?
I could understand it if it were a Bairstows franchise, or one of the other well known brands but most of these propositions are not even heard of by us or the consumer.
Why don't people just set up from home / or a small secondary commercial shop and trade themselves without paying c12K and a cut of the income? Without starting the online debate again, a fair ammount of the selling is done by the portals so if you are good at what you do (and leaflet the chimney pots to death) then you could build a reasonable level of business…..couldn't you?
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Probably why Ewemove are only attracting people with no property experience, anyone with experience would probably know what to do and wouldn't need to pay the £12,950 franchise fee.
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We've got Senior Mangers from Coca Cola, Barclays right through to the former Finance Director at Standard Chartered worldwide. These are people with an incredible track record of success in business who we bring on board for their attitude and aptitude.
You can teach people how to run an Estate Agency business. Finding the talent to people exceptionally well in business is the hard bit. We only recruit around 1 in 50 people who enquire – and our franchisees do the selection – not us. It's unconventional, but it works.
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"We've got Senior Mangers from Coca Cola, Barclays right through to the former Finance Director at Standard Chartered worldwide."
ALL OF WHOM have been with you for what – weeks? A few months at best? Don't brag yet, Mr Ackroyd – some of them may not stay until the ink is dry on their contracts
"You can teach people how to run an Estate Agency business."
Maybe you can – but they won't necessarily be good – or more to the point, successful – Estate Agents.
BIG difference.
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Hi Wilko,
I recently joined an estate agents franchise. It has actually worked out cheaper and quicker than having started up myself. The benefit is that your portal payment are much less than having to buy individual subscriptions, you are joining an existing brand (depending on how well known it is), you get support from more experienced people to name a few. The fee generally covers the costs that would be involved in starting from scratch (depending how much it is), but without the hassle of having to learn the a-z of how to do it all.
I would say however do a lot of research before signing up with anyone – I looked into Ewemove at one point and ran a mile! So glad I did, absolutely shocking Ts&Cs, and although they are very good at promising the world and getting people to sign up, having personal contact with some of their franchisees I have since learned not all is "baaaaarilliant" as far as some of the franchisees franchisees are concerned with a few regrets due to getting "screeeeeweed" and losing every penny they are putting in!
PeeBee – Don't waste your time buddy!
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Hi PeeBee –
Shocking T & C's? – that will be the British Franchise Association contract that we use. Approved by them. Given that they only approve companies that they've vetted, seen the model working, checked out their accounts…
We think our T & C's are very fair –
Eg we don't charge license fees or royalty fees in the first year at all.
We don't lock franchisees in to the full term – all extremely weighted to our franchisees.
You are correct to do your research – and we are definitely not for everyone.
Did you come to see us for a 1:1?
One of the things we promote is that you do speak to our franchisees – we've got nothing to hide.
BTW – Nobody has lost a penny – all franchisees that have joined even have a money back guarantee.
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AHEM – look again… wasn't ME that made the comment you are addressing!!
Now… if you want to get into a REAL discussion with me again – how's about we continue the debate about your ridiculous "cast-iron Sale Guarantee"?
Or are you just going to pray that this article drops off 'Page 1' quickly letting you, albeit temporarily, off the hook as per usual?
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Interesting, and I'm sure there are good models and bad.
You say you got cheaper portal access?
Optimhome offer a monthly fee of £350 to get on portals (plus stationary etc etc.) But surely what you save on the swings(portal fees, and set up costs) you more than lose on the roundabouts(% to fracnchise)?
Does anyone know what happenned to Linda Bellinghams' boyfriends' proposition.?
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Hi Wilko –
I did not mention our portal access. But we pay the same rates as other agents.
There are many franchise variants in Sales, Lettings, combinations. There are lots of cheaper 'online only' offerings as well.
Each has their pro's and cons
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It's a good question. I left my job as a very well paid lawyer, to become a franchisee. I could have used my cash to set up my own business. But I'd advised so many new start companies who ultimately went bust. The failure rate is horrendous. Whereas with a franchise, the success rate is extremely high – So you are almost paying for 'insurance' to get a short cut to success and dramatically increasing your odds. It's not certain though – We've got franchisees doing incredible things, right through to some who are muddling along – the model is the same, the only difference is the franchisee.
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Wilko
Having been a franchisee, there is a huge difference to being an estate agent and running a successful business in its own right. It is the business-running aspects that give the most benefit to a franchisee, as well as a proven model that will be successful if fully replicated. Constant initial contact, mentoring, help, guidance and assistance from those with greater overall experience really is well worth the initial fee and the ongoing franchise fee.
Regards
John
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Oxford English Dictionary – Guarantee – ' a formal promise or assurance that an obligation will be fulfilled' Definitely breaking the Trades Descriptions Act!
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I have been 'arguing' this exact point with the company owners for months, IHS. They choose to ignore what I say – and one of them is a LAWYER!
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Why are you surprised? they are paid £200/ hour to ignore stuff!
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True… 😉
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Maybe signing them up at one a week but how many will be still around in a years time. Still won't worry Darren as he will have had his setting up fees.
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We've been in business since 2005. We launched the franchise in 2013. You can read more about our history here; http://bit.ly/brochurepart1
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Why am I sitting here trying to do a decent job and earn an honest living when all I need to do is invent an animal based brand name, a few catchy one liners, knock up a bit of code and 'fleece' (see, I can do it) a few newbies at £12,000 a pop?
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If only it was that easy 🙂
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Sorry, I forgot to add the bit about dubious projection figures.
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You're right there – we assume franchisees don't bring any properties on board in month 1 and only 2 sales instructions in months 2, 3 and 4 – and yet some franchisees have over 20 instructions in that time. However, better safe than sorry is my view.
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Thank you all for your comments so far. It's really difficult to respond directly to all posts, but our co-owners, David and Glenn, are always happy to deal with individual queries by email.
To clarify, the franchise fee isn't simply a fee to "buy an area". It also includes initial training, systems training, setting up business plans, webinars, workshops, master classes, support systems, licences for our software package, NFOPP training manuals, access to our central team, and so on.
The EweMove franchise offering won't suit everyone, and there are some who will do very well by setting up on their own, and there are others who would prefer to go down a different franchise route. No-one can buy a Bairstow Eves franchise, however; Countrywide sold their franchise operation to Hunters.
What we do offer is entrepreneurial spirits the opportunity to set up with the help and support they need in a new industry, and we have some franchisees who started with us this year who have benefited greatly from this offering to build very quickly. This without their own marketing people, reception staff, accounts department or other staff, without paying for external training, without knowing which bodies to register with, what compliance issues affect them etc.
So, although joining the EweMove group may not be for everyone, there are those out there who believe it to be the best decision they have made. Come along to a franchise show and meet some of them; they come and help us out, and speak about what we offer much more eloquently than I or our co-owners can.
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We've got one here, seems to be spending a lot of time sitting in his car in the town centre! There's been some 'fake' boards up for a few weeks, but they don't appear to have taken anything on yet!
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Hi Hound, where are you based?
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That's for me to know, and you to wonder about.
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Customers can cancel at any time in the first 14 days – so we're not locking in for a long period if we are doing a terrible job from the start. – Err that's the current law for signing contracts away from a place of business so you are only doing what the law demands
Compare this to the 'norm' – We lock you in – so if you do a bad job, it's tough. And if we sell it after 2 years, we'll still charge… – NEVER in 30 years have I heard of any agent getting a 2 yr sole agency contract, why write such rubbish. Most agents get 3 – 6 month contract at best.
If we don't sell a house in our promised period, we sell for free. Hardly 'ripping people off'. All of which is made clear at the start – If you don't sell a house in 77 days you have mis-advised your client in the 1st place. Agents in London are offering a free service after 8 weeks so nothing new
Best of Luck, hope you are still around in a few years.
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Hi Estate Agent W1 –
We've been around for 9 years now.
I'm sorry if my original post was confusing.
I did not mean to suggest that agents have 2 year contracts. They of course vary from 8 weeks – to 6 months.
The point I was trying to make is that after the initial 'lock in' period, the client is free to leave, but with most agents, they stay. And after say 12 or 24 months, if the house is sold, the customer still has to pay the agent a fee.
With us, they don't.
Hope that clarifies.
Thanks
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Hi Estate Agent W1
The Cancellation of Contracts made in a Consumer's Home or Place of Work etc Regulations 2008 provides for a statutory 7 day cooling off period. We have doubled that to ensure that clients are 100% happy with the service before fully committing.
Also, it's irrelevant where the contract is signed, more that the agreement to use an agent's services was agreed in the client's home or place of work. We don't hide behind those kinds of regulations. If our guys are not performing for a client that client can cancel within the first 14 days. Much simpler.
By the way, the 2 years applies under a standard sole agency agreement where an former client sells to someone the agent introduced during the period of their instruction, if that former client doesn't use another agent to market the property in the interim period. If they do, it's 6 months.
I hope that helps.
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"The Cancellation of Contracts made in a Consumer's Home or Place of Work etc Regulations 2008 provides for a statutory 7 day cooling off period. We have doubled that…"
Oh, come off it, please!
Actually, the GOVERNMENT have doubled that – but it doesn't become Law until next month. For reference, I am referring to the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013.
It also covers the bit concerning WHERE the Contract is signed – your customer can sign it at home, in your office (if your Agent HAD one, that is…) or on the Moon and still have 14 days to cancel.
So, in reality, you're doing NO-ONE any favours – just saving the need to change your marketing material in a months' time.
Keep them coming – you guys suck at this game.
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Hi PeeBee
The fact that we have been offering a cooling off period over and above the legal requirements stands. The new regulations are not yet in force, and they certainly weren't when our terms were conceived.
The new regulations follow our principles, and we will welcome them warmly when they actually do take effect. We will, I suspect, be in a very small minority who won't need to change our terms when they do.
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"The fact that we have been offering a cooling off period over and above the legal requirements stands. The new regulations are not yet in force, and they certainly weren't when our terms were conceived. "
For HOW LONG have you been offering this 14-day cooling-off period? Certainly, your owners have never referred to it in previous chest-puffing exercises, so it has never before been considered worthy of huffing and puffing over. Why, then, only FOUR WEEKS before it becomes mandatory do you make such a song and dance here on EYE?
Also, unless you care to direct me otherwise, there is NO REFERENCE ANYWHERE on your website to this 14-day period. If it is so much of an USP – and one you infer you have been offering for some time (awaiting your clarification as to exactly HOW LONG…), then surely (or should that be sEWErly) you would be shouting about it from the rooftops?
"The new regulations follow our principles, and we will welcome them warmly when they actually do take effect."
FOLLOW YOUR PRINCIPLES? You're having a laugh there, matey, are you not? Next you'll be telling us that Government are pushing through a Bill for all Estate Agents to adopt farmyard animals as their mascots.
Yours would therefore be more apt if sheep became BULL.
"We will, I suspect, be in a very small minority who won't need to change our terms when they do."
REALLY? You won't be staying ahead of the competition? You'll simply offer what everyone else is LEGALLY REQUIRED to offer?
I would have expected more from a company who currently offer TWICE the "requirement".
Basically, then, you are letting your standards slip.
Back to ewe.
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I don't doubt that there are gifted business people out there. But to suggest that by simply buying into an off the shelf proposition you will be successful is nonsense. Selection of the franchisee seems to at least be something ewe move are taking seriously, not doing so was the down fall of many a BEves offices, but I cant help but feel defensive against this attitude that "anyone can be an estate agent".
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Hi TPS –
Gifted talent is not a guarantee of success, I totally agree. I also agree that not everyone is cut out to be an estate agent. But here is where we might differ. I'd rather have somebody with zero experience and a fantastic attitude then an industry old hat who doesn't have any 'get up and go' about them. You can't teach attitude – you can teach someone how to do a property appraisal.
But – I accept, it does not guarantee success – But in my opinion, it vastly increases the chances of success.
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Some really interesting posts re franchising.
Clearly it is a model that works really well for some, although I'm sure there are plenty of people who have lost money to those offering false promises.
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Hi Wilko
I absolutely agree with you. It works well for some, but is a bad idea for others.
Also, some franchises are a good fit for some people, whilst others are not.
Potential franchisees should always do plenty of research, talk to existing franchisees, develop an understanding of the offering and what they feel they need from it, and be able to ask full and frank questions of both the franchisor and themselves before making any kind of commitment.
One big question should be "Where are my areas of weakness and how can this franchise benefit me in these areas?"
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On here chaps, I really don't think you are going to drum up any franchisees. You are preaching to the unconvertible.
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Hi Blue.
I know when these stories come out, we often have to put on our hard hats to respond to questions. Estate Agents, just like any other business are not going to sign the virtues of a competitor, and we accept that. However, it's important we have a right of reply to keep the debate balanced. We do track where our leads come from and none from here. But there's also an exception which proves the rule. Are you interested 🙂 🙂
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From the story
"A franchise business which launched almost a year ago…The firm says it now has over 40 franchisees…"
So – forty-odd franchisees, not to mention Messrs Laycock, Ackroyd and associated Head Office staff (quite a few herded in there, according to the pics), other non Fee-earners such as Mr Harley all expecting something out of this at the end of every month.
Out of WHAT, though?
According to RM, the company has a total of SEVENTY EIGHT 'sale' properties (of which 16 – 20.5% – are 'sold'), and SIXTY FIVE 'rental' properties (24 – 37% – of which are 'let') on their books across ALL their franchisees.
Someone want to tell me what's keeping their branches open with such paltry stock and pipeline?
Oh, hang on – they don't have any branches, do they? Silly me… 😉
Still – the above information I am referring to, which is freely available, doesn't exactly paint the rosy picture that the article portrays.
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The "Avon" of agency? great if you are the franchisor but the poor innocent franchisee? If anyone I knew asked my opinion about this I would suggest there isn't enough information available to make an informed decision so pass this chance by.
With the opportunity of fees from tenants evaporating rapidly, this opportunity becomes one of 365/24/7 care for the landlord and their property and 365/24/7 open all hours attention for their tenants. One person can not do that alone so at minimum wage there is a fixed cost of over £60,000 just to man the fort. Only those with no experience of management would sign up for this deal. Glenn is putting up a great and convincing sell but my understanding of both major franchise groups is that it was only when they stopped taking in any Joe Blow that the franchise system started to work for the Franchisor, the franchisee and the franchisee's neighbours all of whom wee negatively affected when an inexperienced duffer was allowed to trade.
It took Ian Wilson best part of 10 years to weed out such Characters from M&C to the point where a Martin and Co office is credible competition in any town.
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Another day without response to my comments/questions, or to those of others.
The sheep are hiding in the pen, no doubt, waiting for this disastrous attempt at feather-fluffing (WOOLy-waving more apt?) to be forgotten.
Can't come quick enough for them, I would suggest.
Until the next time EWE guys lift your heads above the parapets, gents.
Until then, maybe EYE will BAAAAAAAr your self-promotional claptrap from the site.
I would suggest that, from the comments received, many are sick of it being RAMmed down our throats.
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Scam, pure and simple. Avoid like the plague!
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EweMove Scam Victim .. Please could you explain in more detail your comment "Scam, pure and simple. Avoid like the plague!" for any potential investors?
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I am an accountant and one of my clients is with EweMove. I feel sorry for that client. Virtually no sales or profit for that matter. I am also with a franchise and Ewemove takes the **** with poor advice to native franchisees many of whom would struggle to hold down a job in a proper estate agent.
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Could you please explain more on how this is possible? ”Virtually no sales” – every house on the market will sell at the correct price, looking at the outgoings per month in comparison to what a decent estate agent who knows the business could charge per month, the figures should stack up. Would love more information / figures on how your client has no profit?
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