Franchising in Residential Brokerage
10 Pages Posted: 26 Dec 2006
Abstract
This paper explores the profitability of real estate franchises. The database for the study consists of observations from the National Association of Realtors' 2001 survey of real estate brokerage firms. Franchises are found to generate additional revenue for franchisees. However, net margins defined as the difference between revenues received and expenses paid (including franchise royalties) are lower for firms with franchises. The findings indicate that franchisors appear to extract the excess rents from the franchisee.
Keywords: franchise, brokerage, revennue, expense
JEL Classification: L85
Suggested Citation: Suggested Citation
Benjamin, John D. and Chinloy, Peter and Jud, G. Donald and Winkler, Daniel T., Franchising in Residential Brokerage. Journal of Real Estate Research, Vol. 28, No. 1, 2006, Available at SSRN: https://ssrn.com/abstract=953691
Do you have a job opening that you would like to promote on SSRN?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.