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Franchising in Residential Brokerage

Author

Listed:
  • John Benjamin
  • Peter Chinloy
  • Donald Jud
  • Daniel Winkler

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.

Suggested Citation

  • John Benjamin & Peter Chinloy & Donald Jud & Daniel Winkler, 2006. "Franchising in Residential Brokerage," Journal of Real Estate Research, Taylor & Francis Journals, vol. 28(1), pages 61-70, January.
    • Handle: RePEc:taf:rjerxx:v:28:y:2006:i:1:p:61-70
    DOI: 10.1080/10835547.2006.12091170
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