Realogy Will Launch New Franchise Brands in 2019
Last quarter, Realogy CEO Ryan Schneider announced that Realogy is planning to launch at least one new franchise brand in 2019. Today, Realogy announced that the company will launch two new franchise brands ready for selling in the first half of 2019.
The current Realogy brand portfolio includes well-positioned brands serving consumers across all market categories. Better Homes and Gardens Real Estate will continue to occupy a unique position as the industry's lifestyle brand, thanks to our exclusive affiliation with the Better Homes & Gardens® media brand. With this announcement, Realogy has identified two areas where the company believes it can innovate with new brand offerings.
The first opportunity is Corcoran. Since 2001, Corcoran has been a world-class, niche brand serving New York City, the Hamptons, and South Florida. Realogy will expand the iconic Corcoran brand through franchising for the first time, as well as through continuing to grow the company's footprint of owned offices. Part of Corcoran's success has been with international buyers and sellers, which currently make up a large portion of its client base. Realogy can now leverage Corcoran's already well-known brand name with this audience as it expands into new, globally relevant markets.
The second opportunity, Climb Real Estate, has been identified for urban, tech-focused markets. Climb is a Bay Area brokerage which Realogy acquired in 2016. Climb - born in San Francisco and raised in Silicon Valley - is a mobile-enabled brand built for agents, by agents - and is continuously evolving. Founder Chris Lim was first a consumer who wanted to create a better real estate experience, so he became an agent. Then as an agent, he saw a gap in the market for a tech-enhanced approach that would provide choice to both agents and consumers, so he founded Climb. Realogy sees opportunity in urban U.S. markets with similar demographic makeup to the Bay Area - places like downtown Los Angeles or Salt Lake City.
As you know from this and other announcements, there has been a lot of exciting change at Realogy over the past two years. Brands have become even more central to Realogy's business, supported by expanded technology, learning, service and infrastructure.
With this announcement, my role within Realogy has been expanded. In addition to continuing to be the president and CEO of BHGRE, a role I treasure and will continue to serve with great pride and dedication, I have been asked by Realogy leadership to help support the successful launch and initial growth phase of Climb.
The BHGRE brand has never been in a greater position of strength or has enjoyed more momentum than we are enjoying today. We have world-class brokerages in our network, excellent operational processes, and an industry-leading team. As I spend a portion of my time assisting Climb as a strategic resource, I will continue to provide the same executive leadership, strategic direction and network development to BHGRE, which has been the defining role of my career in a brand I love.
As has been shared in the Realogy communications, there is a process in place to bring the new brands into the market. In addition to the public announcement by press release, Realogy is working on the required Franchise Disclosure Documents which will be filed in April. As we get more information about the official go-to-market launch dates for the brands, we will share them with you.
These two exciting brands will enhance Realogy's already extensive portfolio of real estate brands, which are each distinct in positioning, focus, personality, history, and expertise. I have never been more inspired by BHGRE's unique positioning and growth opportunities we enjoy as the industry's lifestyle brand.
President and CEO
Better Homes and Gardens Real Estate