Franchising and Real Estate Brokerage

G Donald Jud, Ronald C Rogers and Glenn E Crellin

The Journal of Real Estate Finance and Economics, 1994, vol. 8, issue 1, 87-93

Abstract: This paper examines the value of franchise affiliation to real estate brokerage firms. It uses a national sample to estimate models of brokerage firm sales and revenues. The results suggest that franchises sell more properties than nonaffiliates, but that the average franchise sale results in less revenue. The net benefit of franchise affiliation is a 9.0 percent increase in net revenue to the average firm. We compare the initial cost of affiliation with the benefits and find that the up-front fees charged by franchisers are substantially lower than the present value of the stream of incremental profits generated by franchise affiliation. Copyright 1994 by Kluwer Academic Publishers

Date: 1994
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Persistent link: https://EconPapers.repec.org/RePEc:kap:jrefec:v:8:y:1994:i:1:p:87-93

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The Journal of Real Estate Finance and Economics is currently edited by Steven R. Grenadier, James B. Kau and C.F. Sirmans

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