Raine and Horne

Expansion: The Super Brand Spreads its Wings would give Singer the cash needed to manufacture his product, and as the licensees would be responsible for teaching consumers how to use the sewing machines, he was confident of achieving strong sales. Singer’s hunch proved correct, leading to the birth of franchising. It wasn’t until the post-World War II baby boom, when demand for widely available products and services started to take off, that many businesses – Raine & Horne included, were in real need of an option that would allow rapid expansion without compromising on quality control. It would take a US-based milkshake mixer salesman by the name of Ray Kroc, to turn franchising into a mainstream commercial system when he recognised the huge potential of a small but highly successful hamburger stand known as McDonalds. Indeed, the arrival of fast food franchises such as McDonalds in the 1970s really kick-started the burgeoning growth of franchising in Australia. Capitalising on a blue chip brand The success of franchising as a system relies on delivering key benefits to both the franchisor and the franchisee. On one hand, it gives the franchisor a cost-effective means to increase its footprint while still controlling the integrity of the brand. For would-be entrepreneurs, franchising offers an opportunity to run their own business backed by an established brand and the proven products, services and systems of the franchisor, thereby eliminating many of the risks associated with starting a business from scratch. Raine & Horne certainly had (and still has) a blue chip brand to build on, and in 1975, after a series of meetings, Top Left: Marketing communication tools that continuously empowered Raine & Horne offices. Above left: Accounts receivable: First cheque covering franchisee fees from the inaugural office Raine & Horne Liverpool. Above: John Pincham: Raine & Horne Liverpool’s pioneering principal, and the announcement of the new office in 1976. Opposite: 100-year milestone: Real estate industry celebrates Raine & Horne’s contribution. the Raine & Horne board unanimously agreed to adopt the franchise business model. It is hardly surprising that Max Raine – ever eager to explore new strategies, was tasked with opening a minimum of five franchise offices by the end of 1976. It would be a major turning point for Raine & Horne as the focus of the business shifted from selling real estate to providing franchise services. The board felt it was better to consolidate a network throughout New South Wales before looking at interstate opportunities, and the first franchise office was opened in Liverpool, a rapidly developing suburb 32 kilometres south-west of the Sydney CBD. It was prime real estate territory as the local population had swelled 13.8 percent in just five years. John Pincham, an experienced Sydney real estate agent, opened the 62

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