Sorting, Franchising and Real Estate Brokerage Firms

• Published in: The journal of real estate finance and economics Vol. 34; no. 2; pp. 189 - 206
• Main Authors: Benjamin, John D, Chinloy, Peter, Winkler, Daniel T
• Format: Journal Article
• Language: English
• Published: Norwell Springer Nature B.V 01.02.2007
• Subjects: Brokerage; Commercial property; Companies; Cost analysis; Costs; Economic rent; Economies of scale; Fast food industry; Fees & charges; Financial management; Franchisees; Franchising; Hypotheses; Hypothesis testing; Market equilibrium; Marketing; Profitability; Profits; Real estate; Real estate agents & brokers; Real estate companies; Real estate market; Regional disparities; Rents; Return on investment; Royalties; Sales; U.S.A; United States > US

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 acros...