The performance impact of strategic corporate real estate in franchise organizations

Abstract

Purpose

The purpose of this paper is to analyze the effect of corporate real estate (CRE) asset ownership on the performances of franchise organizations.

Design/methodology/approach

Using data on all available US public franchise companies, the paper measured the effect of CRE ownership on the risk and return characteristics of franchise firms.

Findings

Unlike previous findings that show negative performance effects of CRE ownership in general, the paper shows positive effects for franchise organizations.

Research limitations/implications

Although the paper includes all available public franchises in the sample, the sample size is still limited.

Practical implications

The results show how CRE ownership can impact the long‐term performances of franchise organizations.

Originality/value

While most of the CRE literature focuses on theory, the paper offers positive empirical evidence of the importance of CRE ownership.

Citation

Park, A. and Glascock, J.L. (2010), "The performance impact of strategic corporate real estate in franchise organizations", Journal of Corporate Real Estate, Vol. 12 No. 2, pp. 81-95. https://doi.org/10.1108/14630011011049531