About Open Door Auctions
Open Door™ Auctions is the UK’s first property auction franchise promoting the modern method of auction as the most effective way of selling and buying any property. Developed alongside BFA-affiliated consultants, we have developed both online and offline offerings with projected year 1 pre-tax profits of £59,000.
Six Reasons to Choose Open Door Auctions
- Consumer behaviour. As detailed above and below, auctions are becoming an increasingly popular way of buying and selling property. People are dissatisfied with the traditional way of buying and selling property.
- No national competitor. We are the only property auction business operating at a local rather than a regional or national level. We, therefore, offer a genuine alternative to conventional estate agents.
- Low start-up costs. We do not require franchisees to have a high street presence, saving £1000s of pounds in the process. We also believe in an owner-operator model which reduces overheads and boosts profit margins.
- Multiple revenue streams. There are multiple revenue streams available to Open Door businesses including auction entry and buyer fees, sales commission and third-party referral fees (i.e. to solicitors).
- Efficient operations model. We operate a refined business model that, when executed properly, can produce a year 1 pre-tax profit of £59k. Based on proven numbers, this increases to c.£100k by year 3.
- High-quality, dedicated support team. While all franchise propositions offer ongoing support, very few combine property knowledge with FTSE 100 consulting experience and/or trade body qualifications. This knowledge and experience is shared across the franchise network.
Why Property Auctioneering?
You don’t need to spend too long researching property trends to know that the modern method of auction is becoming an increasingly popular way of buying and selling houses:
- According to Auction Finance UK, in the first six months of 2014, it witnessed a 135% increase in funded auction sales with some regions of the UK growing by up to 370%.
- In the same period, Auction House reported a 30% increase in the value of properties being sold by auction … evidence that consumers are tiring of the uncertainty created by open market sales.
Why Open Door?
The Open Door Auctions brand was established in the summer of 2012. Specialising in property auctioneering, its pilot franchise has now hosted more than 25 property auctions with the following results:
- It has offered more than 600 lots to the public;
- It has listed more than £80m worth of properties;
- It has sold more than 75% of listed properties;
- It produced a year one turnover of £197k;
- It produced a year one operating (pre-tax) profit of £114k.
Unlike any other auction business in the country, Open Door Auctions works at a local rather than a regional level making personal relationships, digital marketing and speed of sale the primary attractions for customers. We also pride ourselves on successfully repositioning the modern method of auction as the most effective way of selling and buying any property – be it a two-bed terraced house or a five-bed executive home.
Our ultimate goal is to disrupt the ‘open market status quo’ and provide a genuine alternative to customers in every local market in the UK. Simply going online isn’t enough – the country as a whole needs a new way of buying and selling property, so we have plenty of excellent territories to choose from!
Who Runs Open Door?
Open Door Auctions was founded as a family business and, unlike many property franchise propositions, brings together a genuine passion for property with strategic knowledge and foresight that has been developed by working for a top 10 global management consultancy.
This is reflected in the quality of our training, our operations manual and our approach to day-to-day business which places the customer, the digital agenda and the Open Door Auctions brand at the heart of everything we do.
We are now looking to pass on this passion and knowledge to motivated professionals who are capable of building a market-leading business using our brand and intellectual property.
What is Open Door Looking For?
We are looking for likeminded, astute individuals who can replicate Open Door’s brand values and customer service within their local market. If you fit the following description, you are likely to be a good fit for our business:
- At least three years’ professional experience;
- A passion for selling and willingness to work hard;
- Demonstrable business knowledge or flair;
- Highly personable;
- Determined to succeed.
We envisage all franchisees starting their business as an owner-operator. Day-to-day responsibilities will, therefore, include a range of activities including valuing and listing properties, local marketing and PR, approaching prospective customers and coordinating offline / online auction processes.
What Do I Get As Part of the Franchise Package?
In addition to the knowledge and expertise mentioned above, Open Door offers the following as part of its franchise package:
- Exclusive access to a franchise territory mapped by BFA-affiliated suppliers;
- Direct access to high street lenders who can cover up to 70% of start-up costs;
- Support producing and tracking against a tailored business plan;
- Intensive induction training by the founders including preparation for trade body qualifications;
- Ongoing marketing and sales support from the head office team including regular visits.
Franchisees will also be provided with full access to our online sales and CRM platforms which ensure that Open Door is well-placed to meet 21st-century selling and buying habits.
What is the Investment?
Further information is available as part of the Open Door franchise prospectus but, in brief, the key financial metrics validated by British Franchise Association (BFA) affiliated consultants are as follows:
- Joining and training fees = £19,995;
- One-off cost requirements = £2k;
- 7 months’ cashflow requirements = £20k;
- Projected year 1 turnover = £153k;
- Projected year 1 pre-tax profit = £59k.
Of course, to a large extent, earnings are determined by your own ambition and Open Door is confident that, with hard work at both ends, we can help you to achieve and even exceed these figures.
If you are interested in becoming part of a property revolution and learning about our business model in more detail, please complete the form below and we’ll be happy to arrange a follow-up conversation at your own convenience.