YBR consolidates to move to franchise structure

by Julia Corderoy04 Aug 2016
Major mortgage and wealth group Yellow Brick Road (YBR) has ended its aggressive growth phase and announced it will now consolidate to become a franchise wealth management business with branded franchises only.

The plan includes a consolidation in staff numbers and a focus on increased network productivity and adviser recruitment.

The changes follow the acquisition of four businesses: Resi Mortgage Corporation, Vow Financial, Brightday and Loan Avenue; as well as a three-year, $20 million brand investment in YBR to position itself for growth. 

Executive chairman Mark Bouris said the company, as a part of the franchise transition, will release three proprietary technologies to the network which will ramp up local customer acquisition capabilities to improve productivity. 

“Moving to a franchise model is an important progression in our operations. The old licence structure served us well but is not adequately responsive or commercial to meet the future challenges and opportunities for a retail oriented businesses like ours,” Bouris said.

“We’ve had a period of phenomenal growth with multiple acquisitions and the development of new proprietary technologies. It is prudent we bed down this activity and successfully consolidate the acquisitions.”

Bouris said the acquisitions were made to increase scale, market share and distribution to the existing business.

“We’ve also developed a great brand and can now move to lower levels of advertising spend. Meanwhile, our new branch customer acquisition technology will allow us to fully leverage the brand at a local level.” 

In addition, following the recent resignation of Matt Lawler, the CEO – Wealth Management, Bouris has announced the wealth division will be restructured and in future will be led by the newly created role of general manager, reporting directly to the executive chairman. 

The appointment will be announced in due course. 
 

COMMENTS

  • by The B-side 5/08/2016 2:04:19 AM

    Smoke and mirrors. Mass resignation of wealth management personnel from the top to bottom. Recruiting branch principals and staff with no or minimal experience, pushing them through RG146, setting minimum "new business wealth revenue" KPIs or otherwise pay substantial additional fees to YBR, does not make for "trusted advisers" or "quality advice". Salaried YBR wealth management staff are getting out before it completely implodes. Existing branches were backed into a corner to sign the new franchise agreement or else loose their client base, trail & non-compete clause invoked. Any branch not signing the franchise agreement by 31st July 2016 are now being charged an addition $1,500 per month levy until signed. An unsustainable business model, however, most branch owners have gone too far down the yellow brick road to get out. YBR have flipped Elton's iconic track to it's B-side...