The purpose of this paper is to analyze the effect of corporate real estate asset ownership on the performances of franchise organizations. Using data on all available US public franchise companies, we measure the effect of corporate real estate ownership on the risk and return characteristics of franchise firms. Unlike previous findings that show negative performance effects of corporate real estate ownership in general, our study shows positive effects for franchise organizations. Although we include all available public franchises in our sample, however, the sample size is still limited. Nevertheless, our results show how corporate real estate ownership can impact the long term performances of franchise organizations.