REAL ESTATE BROKERAGES AFFILIATE WITH CENDANT BRANDS AT RECORD PACE SALES OF FRANCHISES AT CENDANT'S CENTURY 21(R), COLDWELL BANKER(R), AND ERA(R) Residential and Commercial Real Estate Brands Increased by 90% in the Third Quarter
NEW YORK, Oct 28, 1999 /PRNewswire via COMTEX/ -- The Real Estate
Division of Cendant Corporation (NYSE: CD) announced today that its
third quarter was marked by a significant increase in the number of
brokerages choosing to purchase a real estate franchise from one of its
three real estate companies. Through the CENTURY 21, COLDWELL BANKER
and ERA brands, Cendant's Real Estate Division posted 90 percent growth
in third quarter sales of new franchises.
The 90 percent increase is measured by the annual gross closed
commission income ("GCC") of brokerage companies that purchased or
converted to a Cendant brand franchise during the third quarter. In
aggregate, the newly affiliated companies will generate a total of more
than $180 million in annual GCC (Note: Cendant franchisees pay
royalties to Cendant based on a percentage of their GCC). Sales of new
franchises for the Real Estate Division during the first nine months of
1999 rose by 37 percent over the same 1998 period.
"These results represent the most successful quarter of franchise sales
that this division has ever seen," said Richard A. Smith, chairman and
CEO of Cendant's Real Estate Division. "This growth reflects how
favorably the market is viewing Cendant's substantial investment in
real estate technology, as well as our brands' leadership in delivering
consumer-oriented systems to their franchisees."
Michael Jalbert, executive vice president of Franchise Sales for
Cendant's Real Estate Division, added: "We are particularly pleased
with the accelerating growth in sales of new ERA and COLDWELL BANKER
Commercial(R) franchises. These high growth brands -- in combination
with the considerable merger and acquisition activity within the
CENTURY 21 System and the continued residential expansion of the
COLDWELL BANKER franchise -- have us on pace to complete another
outstanding year."
Cendant Corporation (NYSE: CD) is a global provider of consumer and
business services. Cendant's core competencies include building
franchise systems, providing outsourcing solutions and direct
marketing. As a franchisor, Cendant is the world's leading franchisor
of hotels, rental car agencies, tax preparation services and real
estate brokerage offices. Cendant's Real Estate Division includes: more
than 12,000 residential real estate offices and more than 200,000 sales
associates operating under the CENTURY 21(R), COLDWELL BANKER(R), and
ERA(R) brand names; Cendant Mobility, a global leader in corporate and
government employee relocation with over 1,800 corporate clients;
Cendant Mortgage, the 6th largest retail mortgage originator in the
United States with over $26 billion in loans closed in 1998; and
CompleteHome.com, Cendant's residential real estate services portal on
the Internet. Headquartered in New York, NY, the company has more than
30,000 employees and operates in over 100 countries. More information
about Cendant, its companies and brands can be found at
cendant.com or by calling 877-4INFO-CD (877-446-3623).
SOURCE Cendant Corporation
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