Agency chain pledges higher profits following franchise switch

LSL Property Services - owner of the Reeds Rains and Your Move brands - says it’s movement of agency branches to a primarily franchise operation is on target. 

Earlier this month LSL announced that its entire owned agency network will convert to become franchises, and in doing so transform the company into a business-to-business services provider, with a much smaller cost base and significantly less exposure to housing market cycles. 

This process would also complement LSL’s transition to being a more financial services focused company.

A progress report on the franchise transition says that of the previously 183 owned branches, 143 are now trading as franchises “following a smooth handover” with the remaining 40 expected to complete imminently. 

A statement from LSL says: “The resulting business, with over 60 franchisees operating more than 300 branches, will be a leading player in the sector and is well-placed to grow.  Importantly, it is also a significantly less complex business to manage, freeing up valuable management time, and will enable the [company] to deliver margins that are structurally higher than those it has reported historically.”

LSL continues: “Our focus in estate agency will be to finish the re-structuring required to realise the cost savings that will result from the transition to franchising and position the business to deliver improved returns in 2024.”