The right time to franchise

Choice Home Loans describes itself as having a “strong family culture”. Its staff and franchisees work closely together to assist each other in achieving business growth and success.

In the last 12 months alone, there’s been a 30 per cent increase in brokers joining the group, thus cementing its status as one of Australia’s most trusted mortgage businesses.

“Our value proposition is ‘better advice through better listening’ and this is what really encapsulates our offering to brokers,” Mr Moore says.

Choice Home Loans’ team also aims to provide strategic planning and business coaching to keep them at the forefront of business efficiency.

Given that consumers are increasingly doing more of their product research online, Mr Moore says the power of a strong brand is becoming ever important to help cut through the noise of the digital world.

With this in mind – is it time you made the switch to a franchise group?

Support and systems

Choice Home Loans has a proven and established business operating system to ensure each franchisee’s success.

Mr Moore says the group’s regular advertising presence alone enables it to deliver the dual benefits of building brand awareness and driving online traffic for franchisees.

“The specialist advice we provide around areas like recruitment and business planning helps ensure our franchisees are on the front foot from the moment they open for business,” he says.

“Anecdotal feedback suggests our brokers particularly value the marketing support we provide, such as local area marketing initiatives to client newsletters and marketing collateral. For many small businesses, finding the time and resources to develop such marketing material is a real challenge and this really adds great value for them and supports them to build their profile.

“Other key features of our offering include our state-of-the-art technology platform, Podium 2.0, and our award-winning white-label solution.” 

Choice Home Loans Joondalup director John Morley says the support Choice Home Loans provides is second to none.

“They give business support in all areas. We get full marketing support and there’s no cost,” Mr Morley explains. “It’s basically there to be used as we need it. Anything we need, anything we have a question on, any direction we want to take, any changes we want to make – easily done.”

Choice Home Loans Wollongong owner Paul Wright also praises the high level of support offered by the nationally recognised brand.

“They provide regular meetings with a business development manager, whose role is essentially to help us devise the business plan, assist with and prepare job ads, look at strategies around marketing and recruitment, and obviously communicate with existing and new clients,” Mr Wright says.

Brand strength

Leveraging off Choice Home Loans’ national brand has proven to significantly boost Mr Wright’s business.

He says that partnering with the group has provided long-term benefits that wouldn’t be possible to gain elsewhere.
“In the future if I decide to sell the business, it’ll be easier to sell with a national brand behind me rather than a brand that was aligned more to me,” Mr Wright explains.

He adds that since falling under Choice Home Loans, his business has achieved over 10 per cent growth each year, and is on track for similar growth this year.

Meanwhile, Mr Moore says by being under the franchise brand, brokers are likely to form greater relationships with borrowers.

“A solid, recognised brand with a national presence like Choice Home Loans supports brokers to cut through the noise of the digital age and connect with borrowers looking for a home loan provider they can trust,” he notes.

“Certainly in today’s competitive market, a supportive partner with strong systems, a trusted brand and experience is an attractive option for many brokers. In fact, we are seeing a lot of interest in our franchise from brokers currently working under their own brands.

“Even for experienced brokers with an established business, joining a branded group such as Choice Home Loans offers an opportunity to eliminate current business pain points and release resources to enable the business to move to the next level.”

Lead generation

“Lead generation is one component of the Choice Home Loans model and brokers have the opportunity to receive extra leads, in addition to those that they generate themselves,” Mr Moore says.

Earlier this year, Choice Home Loans launched its own loan comparison tool, affording consumers the ability to compare loans from a range of lenders and then talk directly to a local broker for further information.

Mr Wright notes that lead generation is a given when becoming a part of the Choice Home Loans franchise, given that the group is owned by NAB.

“One of the other big things with Choice is because they’re investing money into lead generation and [they’re] owned by NAB, they’ve provided us with more opportunities to grow our business without us having to do that all ourselves,” he says.

Meanwhile, Mr Morley says that while brokers shouldn’t join a franchise group purely looking for leads, the wider network you become a part of ensures freedom to do business in a trusted and supportive environment.

“What I get from Choice is a peer group network. With business development days and the interactions that we have with other brokers within the group, it basically means that you’re in a safe environment [in which] you can openly discuss, and you can learn from other people,” he explains.

“You know that you’re not talking to a competitor, so therefore you can be less guarded on what you want to talk about.”

Common misconceptions

Of course there are many myths about joining a franchise group, the standout one relating to cost.

“Brokers often assume that there are high overhead costs associated with joining a franchise, but in the case of many branded mortgage businesses today, the cost is often much lower than they expect. If cost is holding you back from exploring a franchise group, I’d urge you to take some time to explore the market – you may be pleasantly surprised,” Mr Moore notes.

Mr Morely backs up Choice Home Loans in regards to cost.

“When joining a franchise group, [it’s believed] that there is going to be a lot more levels of cost that come into the business. With Choice, that doesn’t happen,” Mr Morely says.

Another misconception brokers often have about joining a franchise is that head office controls how individual franchisees operate.
“I think that one of the big [misconceptions] would be that they make you conform to how they want you to operate,” Mr Wright says.

“While Choice provides the guidelines and helps with benchmarking against other people in the industry, they don’t force you to do things; they don’t tell me how to run my business.”

Making the switch

There are many considerations brokers must assess before taking the plunge into a franchise group.

Mr Wright says he made the decision to turn to Choice Home Loans after realising his marketing and general practices were becoming outdated. “I felt that a national organisation has better support and better capital for advertising and marketing,” he explains.

“My website was starting to look dated, my brochures were looking dated. Was I to do all that work myself or do I leverage off something that has already been done?

“Choice does your websites, a lot of the marketing and that allows me to focus more on my core business of writing loans. That’s one of the things that really attracted me to them and it was just the right timing.”

Providing a top-down view on joining a franchise, Mr Moore says it’s not just whether to join one, but which one to join, that is equally important.

“My first piece of advice to brokers considering a move to a franchise group would be to take some time to consider what you really want from your partner. Think about your skill set, where you need support and what your future business aspirations are,” Mr Moore says.

“It’s also essential to stress-test different groups’ offerings. Some brands may invest a lot in advertising for example, but they may not offer such dedicated on-the-ground support. Take care to look at the entire proposition of a franchise before making any decisions.

“Switching to a franchise, like any transition, can also involve some administration, so it’s important to be prepared for that.

“At Choice Home Loans, we do our best to take the hard work out of the transition phase, so our brokers can feel confident their business is in good hands.”

PARTNER MESSAGE

Stephen Moore
CEO, Choice Home Loans

BEING PART of the right group is essential for any broker to reach their full potential. And for many brokers, partnering with a branded franchise network can be the best choice. A solid brand is at the heart of any successful business and a franchise can offer brokers the opportunity to join a strong brand network that provides customers with both trust and confidence. In the current home loan market, navigating financing options has become even more complex and confusing for borrowers, making a trusted brand more valuable currency than ever. 

Of course, a national brand isn’t the only drawcard for joining a franchise. At Choice Home Loans, our vision is to be Australia’s most trusted mortgage business and we work hard to support our members to bring this vision to life. From marketing support through to business coaching and recruitment services, a franchise can offer a host of specialised systems and resources, that can help you build a thriving business. 

At a time when it’s more important than ever to build an efficient business and a brand that can cut through the competitive landscape, joining a franchise could be worth considering.  

CASE STUDY: KIM KERSHAW – DIRECTOR, CHOICE HOME LOANS YARRAVILLE/ KIM KERSHAW FINANCIAL SOLUTIONS

Why did you become involved with Choice Home Loans?

Two years ago I wanted to expand my business, so I looked at all the different models available to do that. With the limited resources that I had, I ended up deciding that the model the Choice Home Loans franchise offers is exceptional. Since then, I’ve established two franchises and am in the process of formalising a third, and expect a fourth one by early next year.

How has your business changed since partnering with Choice Home Loans?

My business had reached a point where it just couldn’t cope with the level of business that it had, and I wasn’t structured properly to expand that and fund that expansion. What I’ve found with Choice is that they’re very well structured. I feel very comfortable relying on Choice Home Loans to support me with all of my day-to-day and ongoing requirements.

What is Choice Home Loans’ key point of difference?

They have a proven system and an exceptionally strong and well-recognised brand. Their support model provides an enormous amount of training, coaching and marketing support.

What are the benefits of leveraging off a national brand?

For me, it’s the more cost-effective model and they have a sensational brand. Backed up by the fact that it’s actually owned by National Australia Bank – that gives you some comfort that there will be real longevity in this particular model.

What’s been the client feedback since joining Choice Home Loans?

Fantastic. It’s a well-known brand, they know who we are so we don’t have to explain it, so there haven’t been any issues and it’s all been positive.

What advice can you give brokers considering a franchise?

Fully research every single one: the options, what the offering is and the support. If you’re by yourself, working from home or working from an office where you don’t have someone to round things off, it can get a bit lonely!

Feature partnered by Choice Home Loans