Franchising in Residential Brokerage

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Gustav D. Jud, Retired (Creator)
Daniel T. Winkler, Professor (Creator)
Institution
The University of North Carolina at Greensboro (UNCG )
Web Site: http://library.uncg.edu/

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.

Additional Information

Publication
Journal of Real Estate Research, vol. 28, no. 1, 2006, pp. 61-70
Language: English
Date: 2006
Keywords
profitability, real estate, franchise, survey