Franchising in Residential Brokerage

John D. Benjamin (), Peter Chinloy (), Donald Jud () and Daniel T. Winkler ()
Additional contact information
John D. Benjamin: Kogod School of Business, American University, 4400 Massachusetts Ave., NW, Washington, DC 20016
Peter Chinloy: Kogod School of Business, American University, 4400 Massachusetts Ave., NW, Washington, DC 20016
Donald Jud: Bryan School of Business and Economics, University of North Carolina at Greensboro, Greensboro, NC 27412-5001
Daniel T. Winkler: Bryan School of Business and Economics, University of North Carolina at Greensboro, Greensboro, NC 27412-5001

Journal of Real Estate Research, 2006, vol. 28, issue 1, 61-70

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.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (2)

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