Better Homes & Gardens Real Estate Re-Birthed

Implications: Realogy(Now owned by Appolo) recently announced a long term agreement with Meridith Corporation to license the name Better Homes & Gardens for a 50 year term.  This move allows Realogy to return to its strength of selling franchises and building a brand.  Although technically a start-up there is great brand equity in the real estate community and a fondness for the old BH&G Franchise. 

Analysis:  With the Coldwell Banker and Century 21 Brands nearing saturation nationally this agreement allows Realogy to grow market share in every market through a new franchise brand. This will come on the heals of their success with the growth of the Sothebys Brand whose licensing agreement  was far more restrictive in what markets and the type of companies that could be sold. It is currently a very difficult environment to sell franchises, but if anyone can, Realogy will.  There are a number of quality companies that would like to be associated with Realogy but may be unable to because of representitives of their brands already in place.  The Better Homes & Gardens brand will be ready for launch in the summer of 2008 after Meridiths agreement with GMAC Home Services expires.  GMAC chose to phase out the BH&G name when it purchased the BH&G network from  Meridith in 1998.

I happened to be the third employee hired by GMAC Real Estate after their puchase in 1998. I was a part of the transition planning to convert the franchisees to GMAC Real Estate.  I can tell you first hand that the Better Homes & Gardens brand name back then had a lot of positive features and many brokers converted to GMAC Real Estate "kicking and screaming". There is still a fondness for the brand in the industry and by the consumer population in general. Still it will not be easy and Realogy will  see little addition to their earnings because of this move until 2009 and beyond.  Even then it will be a difficult and expensive build of a real estate brand that has been essentially dormant for 7+ years.

Better Homes & Gardens Real Estate welcome back.