Washington — One of the most internationally familiar brand names in residential real estate is entering the markets in Russia, Kazakhstan and Ukraine.
The U.S. Overseas Private Investment Corporation (OPIC) approved in July a $3.6 million loan to a small business that plans to franchise the real estate brand CENTURY 21 in Russia, Kazakhstan and Ukraine, introducing standardized home-buying practices to the largely unregulated real estate markets in those countries.
CENTURY 21 Russia, Kazakhstan, and The Ukraine will use the loan to establish a network of CENTURY 21 offices beginning in Moscow and then expanding to other major cities. “We are in the business of selling franchises to Russian realtors, investors, and others seeking to work in the business of real estate brokerage in Russia,� says the company’s president, Nuri Katz.
Why buy a franchise when a small business can be started for less from scratch? The short answer is that franchises can be less costly to operate and less likely to fail, in part because franchises can take advantage of economies of scale in advertising, distribution and worker training. Moreover, consumers see a well-regarded brand name as an assurance of quality.
Founded in 1971, CENTURY 21 is now the world’s largest residential real-estate franchising organization, with 143,000 agents working out of 7,800 offices in 42 countries.
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