Two firms have merged as part of a franchising arrangement.

Newton Fallowell has merged with Hartleys’ sales business to give a combined network of 25 offices across the midlands. Both firms will keep their identities and Hartleys is fully retaining its lettings operation.

The deal means that Gary Hartley becomes a shareholder and executive director of the Newton Fallowell group, which now includes four Hartley branches.

Hartley, a former England rugby international, founded his midlands firm in 1995. All staff in the group are being retained at existing branches.

Newton Fallowell, founded by chief executive Mark Newton in 1999, has grown through a franchising model to 21 (now 25) branches and 150 staff (now 175) across the region.

The merger is said to have grown out of a long-standing relationship between Hartley and Newton, who worked together as chartered surveyors in the 1980s before each setting up their respective businesses.

Hartley said: “We have a team of young and ambitious branch managers, all looking to go places. This merger will provide major opportunities for growth, thanks to the resources of the combined group and the bigger geographic territory, and enable our managers to take greater ownership at branch level within a strong and supportive infrastructure.

“Customers won’t see any change in the people they deal with or the style of delivery – just in the results we are able to achieve. The message is ‘business as usual’ – it’s not a buy-out, it’s not a takeover – we’re just part of a bigger family.”

The Hartleys lettings business is not included in the agreement and will continue to trade as a stand-alone business, with Gary Hartley remaining as senior partner.

Newton Fallowell chief executive Mark Newton said: “This deal is about creating a win-win opportunity for both firms. Unwinding the residential sales operation from Hartleys to merge with us at Newton Fallowell will give extra muscle for future expansion and keep us ahead of the game.

“Market conditions have improved considerably in the region, but it’s still tough and there are major changes in the mortgage market for buyers to contend with.

“We’ve increased our footprint by 25% overnight and the bigger network is going to bring benefits for both buyers and sellers by opening the door to a much increased customer base.”