The Performance Impact of Strategic Corporate Real Estate in Franchise Organizations

Abstract

Purpose: To analyze the effect of corporate real estate asset ownership on the performances of franchise organizations. Design/methodology/approach: Using data on all available US public franchise companies, we measure the effect of corporate real estate ownership on the risk and return characteristics of franchise firms. Findings: Unlike previous findings that show negative performance effects of corporate real estate ownership in general, our study shows positive effects for franchise organizations. Research limitations/implications: Although we include all available public franchises in our sample, the sample size is still limited. Practical implications: Our results show how corporate real estate ownership can impact the long term performances of franchise organizations. Originality/value: While most of the corporate real estate literature focuses on theory, we offer positive empirical evidence of the importance of corporate real estate ownership.

Keywords: Corporate Real Estate, Franchises, Company Performance

JEL Classification: A10