Franchising in Residential Brokerage

10 Pages Posted: 26 Dec 2006

See all articles by John D. Benjamin

John D. Benjamin

American University - Kogod School of Business

Peter T. Chinloy

American University - Department of Finance and Real Estate

G. Donald Jud

University of North Carolina (UNC) at Greensboro - Department of Accounting and Finance

Daniel T. Winkler

University of North Carolina at Greensboro

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

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

John D. Benjamin (Contact Author)

American University - Kogod School of Business ( email )

4400 Massachusetts Avenue NW
Department of Finance
Washington, DC 20016
United States
(202) 885-1892 (Phone)
(202) 885-1946 (Fax)

Peter Chinloy

American University - Department of Finance and Real Estate ( email )

Kogod School of Business
4400 Massachusetts Ave., N.W.
Washington, DC 20016-8044
United States
202-885-1951 (Phone)
202-885-1992 (Fax)

G. Donald Jud

University of North Carolina (UNC) at Greensboro - Department of Accounting and Finance ( email )

P.O. Box 26165
Greensboro, NC 27412
United States
336-334-3091 (Phone)
336-334-4141 (Fax)

Daniel T. Winkler

University of North Carolina at Greensboro ( email )

P.O.Box 26170
Greensboro, NC 27412
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
84
Abstract Views
633
rank
292,754
PlumX Metrics