Franchising in Residential Brokerage
This paper explores the profitability of real estate franchises. The database for the study consists of observations from the National Association of RealtorsÂ©' 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.
Volume (Year): 28 (2006)
Issue (Month): 1 ()
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- Danielle Lewis & Randy Anderson, 1999. "Residential Real Estate Brokerage Efficiency and the Implications of Franchising: A Bayesian Approach," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 27(3), pages 543-560.
- G Stacy Sirmans & David A. Macpherson, 2001. "Affinity Programs and the Real Estate Brokerage Industry," Journal of Real Estate Research, American Real Estate Society, vol. 22(3), pages 337-352.
- Leonard V. Zumpano & Harold W. Elder, 1994. "Economies of Scope and Density in the Market for Real Estate Brokerage Services," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 22(3), pages 497-513. Full references (including those not matched with items on IDEAS)
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