Details

Autor(en) / Beteiligte

• Benjamin, John D
• Chinloy, Peter
• Winkler, Daniel T

Titel

Sorting, Franchising and Real Estate Brokerage Firms

Ist Teil von

• The journal of real estate finance and economics, 2007-02, Vol.34 (2), p.189-206

Ort / Verlag

Norwell: Springer Nature B.V

Erscheinungsjahr

2007

Link zum Volltext

Quelle

EBSCOhost Business Source Ultimate

Beschreibungen/Notizen

• Real estate markets remain localized and reflect differences by region. With a large number of brokerage firms and a smaller number of franchisors, a testable hypothesis is whether in equilibrium fees and royalties are equal to the additional return to the franchisee. If fees are set uniformly across the country, economic rents may be earned in specific local markets. Some franchisees may earn excess profits from the franchise arrangement. Empirical results for 1,143 United States residential brokerage firms in 2001 show standardized uniform franchising costs cover any added returns to franchises in the Midwest and South. Excess returns are present for franchisees in the Northeast. The probability of being a franchisee increases with size and scale. [PUBLICATION ABSTRACT]