Corcoran 2025 Franchise FAQ - FDD Ninja

Question 1

According to Corcoran's FDD, what was the total number of Sotheby's International Realty outlets operated by Anywhere Advisors at the end of 2024?

Accepted Answer

ber 31, 2024, maturities of lease liabilities by fiscal year were as follows:

| years is as follows: |  |  |
|---|---|---|
| Year | Amount |  |
| 2025 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $490 |  |
| 2026  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 403 |  |
| 2027  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |  | — |
| 2028  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |  | — |
| 2029  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 558 |  |
Supplemental income statement information related to the Company's leases is as follows:

|  | (Unaudited) |  |
|---|---|---|
|  | 2024 2023 | 2022 |
| Franchised (domestic and international): |  |  |
| Century 21® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,986    11,972 | 13,611 |
| ERA® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,291    2,395 | 2,407 |
| Coldwell Banker®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,145    2,140 | 2,100 |
| Coldwell Banker Commercial® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 208 | 189    171 |
| Sotheby’s International Realty®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,065    1,071 | 1,035 |
| Better Homes and Gardens® Real Estate . . . . . . .

Source: Item 23 — RECEIPTS (FDD pages 75–276)

Question 2

According to the projections as of December 31, 2024, how many new franchised Corcoran outlets are projected to open in the next fiscal year across all states?

Accepted Answer

| State          | Franchise Agreements Signed But Outlet Not Open | Projected New Franchised Outlets In the Next Fiscal Year | Projected New Company Owned Outlets In the Next Fiscal Year |
|----------------|-------------------------------------------------------------|----------------------------------------------------------------------|-------------------------------------------------------------------------|
| California     | 1                                                           | 2                                                                    | 0                                                                       |
| Colorado       | 0                                                           | 2                                                                    | 0                                                                       |
| Florida        | 0                                                           | 1                                                                    | 0                                                                       |
| Georgia        | 0                                                           | 1                                                                    | 0                                                                       |
| Maryland       | 0                                                           | 1                                                                    | 0                                                                       |
| Massachusetts  | 0                                                           | 1                                                                    | 0                                                                       |
| New Jersey     | 0                                                           | 4                                                                    | 0                                                                       |
| New Mexico     | 0                                                           | 1                                                                    | 0                                                                       |
| North Carolina | 0                                                           | 1                                                                    | 0                                                                       |
| Oregon         | 0                                                           | 2                                                                    | 0                                                                       |
| South Carolina | 0                                                           | 2                                                                    | 0                                                                       |
| Texas          | 0                                                           | 1                                                                    | 0                                                                       |
| Virginia       | 0                                                           | 2                                                                    | 0                                                                       |
| Washington     | 0                                                           | 1                                                                    | 0                                                                       |
| Total          | 1                                                           | 22                                                                   | 0                                                                       |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 68–73)

Question 3

As of December 31, 2024, approximately how many independent sales agents operated under the Corcoran® brand name within the Anywhere Advisors group?

Accepted Answer

Anywhere Advisors ("Owned Brokerage Group")—operates a full-service real estate brokerage business with approximately 580 owned and operated brokerage offices with approximately 52,900 independent sales agents under the Coldwell Banker®, Corcoran® and Sotheby's International Realty® brand names in many of the largest metropolitan areas in the U.S.

Source: Item 23 — RECEIPTS (FDD pages 75–276)

Question 4

As of December 31, 2024, approximately how many independent sales agents were operating in the U.S. under the Corcoran brand and other Anywhere Brands real estate franchise systems?

Accepted Answer

The Company reports its operations in the following three business segments (the number of offices and agents are unaudited):

- Anywhere Brands ("Franchise Group")—franchises a portfolio of well-known, industry-leading franchise brokerage brands, including Better Homes and Gardens® Real Estate, Century 21®, Coldwell Banker®, Coldwell Banker Commercial®, Corcoran®, ERA® and Sotheby's International Realty®. As of December 31, 2024, the Company's real estate franchise systems and proprietary brands had approximately 311,900 independent sales agents worldwide, including approximately 179,200 independent sales agents operating in the U.S. (which included approximately 52,900 company owned brokerage independent sales agents). As of December 31, 2024, the Company's real estate franchise systems and proprietary brands had approximately 17,800 offices worldwide in 119 countries and territories, including approximately 5,300 brokerage offices in the U.S. (which included approximately 580 company owned brokerage offices). This segment also includes the Company's global relocation services operation through Cartus® Relocation Services ("Cartus") and lead generation activities through Anywhere Leads Inc. ("Leads Group").

Source: Item 23 — RECEIPTS (FDD pages 75–276)

Question 5

What is the estimated range for total initial investment to open a Corcoran franchise?

Accepted Answer

| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Real Estate [4] | $0 - $20,800 | Lump sum or open account | As incurred | Suppliers, Landlord |
| Leasehold Improvements [5] | $0 - $105,000 | Progress Payments | Before Opening | Contractors |
| Building Signs [6] | $700 - $20,000 | Lump sum, leased or financed | Within 60 days of signing the Franchise Agreement | Suppliers |
| Yard Signs, Frames/Posts [7] | $6,700 - $12,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Open House Signs [8] | $900 - $2,500 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Miscellaneous Rider Signs | $200 - $400 | Lump sum or | Within 30 days of signing | Suppliers |
| [9] |  | open account | the Franchise Agreement |  |
| Name Badges [10] | $400 - $500 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Miscellaneous [11] | $250 - $500 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Printed Materials [12] | $5,000 - $25,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Insurance [13] | $500 - $4,000 | Lump sum or open account | Before Opening | Rated carriers |
| Legal Expenses [14] | $0 - $4,000 | As incurred | Before Opening | Attorneys |
| Orientation – Travel Expenses and Costs [15] | $400 - $5,400 | As incurred | Within 12 months of the Opening Date of your Main Office | Airlines, restaurants, hotels, etc. |
| Computer Equipment for Electronic Data Transfer System [16] | $5,000 - $10,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Website [17] | $1,000 - $50,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Multiple Listing Services | $0 - $3,000 | As incurred | Within 30 days of signing | Suppliers or to us |
| [17] |  |  | the Franchise Agreement |  |
| Data Feed Transmission [18] | $0 - $5,000 | Lump sum or open account | As incurred | Suppliers |
| Additional Launch Expenses (Grand Opening) [19] | $3,000 - $5,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Advertising Agency, Media, Entertainment |
| Signature Elements [20] | $12,000 - $20,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Additional Funds | $15,000 - $40,000 | As incurred | As incurred | Employees, |
| (first 3 months after opening) |  |  |  | Suppliers, |
| [21] |  |  |  | Utilities, Us |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
| Total | $56,050 – $358,100 |  |  |  |

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 34–40)

Question 6

How many Corcoran outlets were closed in total during 2023?

Accepted Answer

--|---|---|---|---|
| Florida | 2022 | 5 | 2 | 0 | 0 | 0 | 7 |
|  | 2023 | 7 | 0 | 0 | 0 | 0 | 7 |
|  | 2024 | 7 | 0 | 0 | 0 | 0 | 7 |
| State | Year | Outlets at Start of the Year | Outlets Opened | Outlets Reacquired from Franchisee | Outlets Closed | Outlets Sold to Franchisee | Outlets at End of the Year |
|---|---|---|---|---|---|---|---|
| New York | 2022 | 23 | 0 |

Source: Item 23 — RECEIPTS (FDD pages 75–276)

Question 7

For a new Corcoran start-up office, what is the total estimated initial investment range?

Accepted Answer

| Item | Amounts | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Facility and Space Planning [1] | $9,000 - $17,500 | Lump sum or open account | Before opening | Architects, consultants |
| Furnishings and Communications Equipment [2] | $27,000 - $87,500 | As incurred | Before opening | Suppliers, Anywhere Services Group |
| Security and Other Deposits [3] | $7,500 - $17,700 | Lump sum or open account | Before opening | Utilities, landlord |
| Prepaid Business Expenses [4] | $3,000 - $4,600 | Lump sum | Before opening | Rated carriers, government agencies, suppliers |
| Additional Funds (first 3 months after opening) [5] | $35,000 - $60,000 | As incurred for other expenses | After opening | Employees, suppliers, and utilities |
| Total Additional Cost for New | $81,500 - $187,300 |  |  |  |
| Start-Up Office |  |  |  |  |
| Total Initial Investment for | $56,050 - $358,100 |  |  |  |
| Conversion Office (from |  |  |  |  |
| Conversion Office table |  |  |  |  |
| above) |  |  |  |  |
| Total Investment for New | $137,550 - $545,400 |  |  |  |
| Start-Up Office |  |  |  |  |

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 34–40)

Question 8

What was the range of initial franchise fees paid for a Corcoran Branch Office in 2024?

Accepted Answer

equired to sign a Limited Purpose Office Addendum. See Item 1.

In 2024, initial franchise fees paid by franchisees ranged from \$0 to \$25,00

Source: Item 5 — INITIAL FEES (FDD pages 25–26)

Question 9

What was the range of initial franchise fees paid for a Corcoran Main Office in 2024?

Accepted Answer

equired to sign a Limited Purpose Office Addendum. See Item 1.

In 2024, initial franchise fees paid by franchisees ranged from \$0 to \$25,00

Source: Item 5 — INITIAL FEES (FDD pages 25–26)

Question 10

What is the total amount expected to be incurred across all groups (Franchise Group, Owned Brokerage Group, Title Group, Corporate and Other) for Corcoran?

Accepted Answer

|  | expected to be | Amount incurred | remaining to be |
|---|---|---|---|
|  | incurred | to date | incurred |
| Franchise Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $17  $ | 17  $ | — |
| Owned Brokerage Group  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 54 | 54 | — |
| Title Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5 | 5 | — |
| Corporate and Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 13 | 13 | — |
| Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $89  $ | 89  $ | — |

Source: Item 23 — RECEIPTS (FDD pages 75–276)

Question 11

What is the total estimated additional cost for a new Corcoran start-up office?

Accepted Answer

| Item | Amounts | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Facility and Space Planning [1] | $9,000 - $17,500 | Lump sum or open account | Before opening | Architects, consultants |
| Furnishings and Communications Equipment [2] | $27,000 - $87,500 | As incurred | Before opening | Suppliers, Anywhere Services Group |
| Security and Other Deposits [3] | $7,500 - $17,700 | Lump sum or open account | Before opening | Utilities, landlord |
| Prepaid Business Expenses [4] | $3,000 - $4,600 | Lump sum | Before opening | Rated carriers, government agencies, suppliers |
| Additional Funds (first 3 months after opening) [5] | $35,000 - $60,000 | As incurred for other expenses | After opening | Employees, suppliers, and utilities |
| Total Additional Cost for New | $81,500 - $187,300 |  |  |  |
| Start-Up Office |  |  |  |  |

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 34–40)

Question 12

What is the total initial investment estimated for a Corcoran conversion office?

Accepted Answer

| Item | Amounts | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Facility and Space Planning [1] | $9,000 - $17,500 | Lump sum or open account | Before opening | Architects, consultants |
| Furnishings and Communications Equipment [2] | $27,000 - $87,500 | As incurred | Before opening | Suppliers, Anywhere Services Group |
| Security and Other Deposits [3] | $7,500 - $17,700 | Lump sum or open account | Before opening | Utilities, landlord |
| Prepaid Business Expenses [4] | $3,000 - $4,600 | Lump sum | Before opening | Rated carriers, government agencies, suppliers |
| Additional Funds (first 3 months after opening) [5] | $35,000 - $60,000 | As incurred for other expenses | After opening | Employees, suppliers, and utilities |
| Total Additional Cost for New | $81,500 - $187,300 |  |  |  |
| Start-Up Office |  |  |  |  |
| Total Initial Investment for | $56,050 - $358,100 |  |  |  |
| Conversion Office (from |  |  |  |  |
| Conversion Office table |  |  |  |  |
| above) |  |  |  |  |
| Total Investment for New | $137,550 - $545,400 |  |  |  |
| Start-Up Office |  |  |  |  |

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 34–40)

Question 13

What is the total investment estimated for a new Corcoran start-up office?

Accepted Answer

| Item | Amounts | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Facility and Space Planning [1] | $9,000 - $17,500 | Lump sum or open account | Before opening | Architects, consultants |
| Furnishings and Communications Equipment [2] | $27,000 - $87,500 | As incurred | Before opening | Suppliers, Anywhere Services Group |
| Security and Other Deposits [3] | $7,500 - $17,700 | Lump sum or open account | Before opening | Utilities, landlord |
| Prepaid Business Expenses [4] | $3,000 - $4,600 | Lump sum | Before opening | Rated carriers, government agencies, suppliers |
| Additional Funds (first 3 months after opening) [5] | $35,000 - $60,000 | As incurred for other expenses | After opening | Employees, suppliers, and utilities |
| Total Additional Cost for New | $81,500 - $187,300 |  |  |  |
| Start-Up Office |  |  |  |  |
| Total Initial Investment for | $56,050 - $358,100 |  |  |  |
| Conversion Office (from |  |  |  |  |
| Conversion Office table |  |  |  |  |
| above) |  |  |  |  |
| Total Investment for New | $137,550 - $545,400 |  |  |  |
| Start-Up Office |  |  |  |  |

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 34–40)

Question 14

What is the total projected number of new franchised Corcoran outlets expected to open in the next fiscal year, as stated in the FDD?

Accepted Answer

| State          | Franchise Agreements Signed But Outlet Not Open | Projected New Franchised Outlets In the Next Fiscal Year | Projected New Company Owned Outlets In the Next Fiscal Year |
|----------------|-------------------------------------------------------------|----------------------------------------------------------------------|-------------------------------------------------------------------------|
| California     | 1                                                           | 2                                                                    | 0                                                                       |
| Colorado       | 0                                                           | 2                                                                    | 0                                                                       |
| Florida        | 0                                                           | 1                                                                    | 0                                                                       |
| Georgia        | 0                                                           | 1                                                                    | 0                                                                       |
| Maryland       | 0                                                           | 1                                                                    | 0                                                                       |
| Massachusetts  | 0                                                           | 1                                                                    | 0                                                                       |
| New Jersey     | 0                                                           | 4                                                                    | 0                                                                       |
| New Mexico     | 0                                                           | 1                                                                    | 0                                                                       |
| North Carolina | 0                                                           | 1                                                                    | 0                                                                       |
| Oregon         | 0                                                           | 2                                                                    | 0                                                                       |
| South Carolina | 0                                                           | 2                                                                    | 0                                                                       |
| Texas          | 0                                                           | 1                                                                    | 0                                                                       |
| Virginia       | 0                                                           | 2                                                                    | 0                                                                       |
| Washington     | 0                                                           | 1                                                                    | 0                                                                       |
| Total          | 1                                                           | 22                                                                   | 0                                                                       |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 68–73)

Question 15

What was the total revenue from company owned locations across all brands listed, including Corcoran, in 2022?

Accepted Answer

|  | (Unaudited) |  |
|---|---|---|
|  | 2024 2023 | 2022 |
| Franchised (domestic and international): |  |  |
| Century 21® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,986    11,972 | 13,611 |
| ERA® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,291    2,395 | 2,407 |
| Coldwell Banker®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,145    2,140 | 2,100 |
| Coldwell Banker Commercial® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 208 | 189    171 |
| Sotheby’s International Realty®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,065    1,071 | 1,035 |
| Better Homes and Gardens® Real Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |  |  |
|  | 386 | 440    418 |
| Corcoran®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |  |  |
|  | 124 | 96    82 |
| Total Franchised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 17,205    18,303 | 19,824 |
| Company owned: |  |  |
| Coldwell Banker®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 506 | 551    606 |
| Sotheby’s International Realty®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 44 | 44    44 |
| Corcoran®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 25 | 28    29 |
| Total Company Owned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 575 | 623    679 |

Source: Item 23 — RECEIPTS (FDD pages 75–276)

Question 16

What was the total revenue from company owned locations across all brands listed, including Corcoran, in 2023?

Accepted Answer

|  | (Unaudited) |  |
|---|---|---|
|  | 2024 2023 | 2022 |
| Franchised (domestic and international): |  |  |
| Century 21® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,986    11,972 | 13,611 |
| ERA® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,291    2,395 | 2,407 |
| Coldwell Banker®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,145    2,140 | 2,100 |
| Coldwell Banker Commercial® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 208 | 189    171 |
| Sotheby’s International Realty®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,065    1,071 | 1,035 |
| Better Homes and Gardens® Real Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |  |  |
|  | 386 | 440    418 |
| Corcoran®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |  |  |
|  | 124 | 96    82 |
| Total Franchised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 17,205    18,303 | 19,824 |
| Company owned: |  |  |
| Coldwell Banker®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 506 | 551    606 |
| Sotheby’s International Realty®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 44 | 44    44 |
| Corcoran®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 25 | 28    29 |
| Total Company Owned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 575 | 623    679 |

Source: Item 23 — RECEIPTS (FDD pages 75–276)

Question 17

What was the total revenue from franchised locations across all brands listed, including Corcoran, in 2022?

Accepted Answer

ber 31, 2024, maturities of lease liabilities by fiscal year were as follows:

| years is as follows: |  |  |
|---|---|---|
| Year | Amount |  |
| 2025 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $490 |  |
| 2026  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 403 |  |
| 2027  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |  | — |
| 2028  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |  | — |
| 2029  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 558 |  |
Supplemental income statement information related to the Company's leases is as follows:

|  | (Unaudited) |  |
|---|---|---|
|  | 2024 2023 | 2022 |
| Franchised (domestic and international): |  |  |
| Century 21® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,986    11,972 | 13,611 |
| ERA® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,291    2,395 | 2,407 |
| Coldwell Banker®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,145    2,140 | 2,100 |
| Coldwell Banker Commercial® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 208 | 189    171 |
| Sotheby’s International Realty®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,065    1,071 | 1,035 |
| Better Homes and Gardens® Real Estate . . . . . . . . . . . . .

Source: Item 23 — RECEIPTS (FDD pages 75–276)

Question 18

What was the total revenue from franchised locations across all brands listed, including Corcoran, in 2023?

Accepted Answer

|  | (Unaudited) |  |
|---|---|---|
|  | 2024 2023 | 2022 |
| Franchised (domestic and international): |  |  |
| Century 21® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,986    11,972 | 13,611 |
| ERA® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,291    2,395 | 2,407 |
| Coldwell Banker®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,145    2,140 | 2,100 |
| Coldwell Banker Commercial® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 208 | 189    171 |
| Sotheby’s International Realty®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,065    1,071 | 1,035 |
| Better Homes and Gardens® Real Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |  |  |
|  | 386 | 440    418 |
| Corcoran®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |  |  |
|  | 124 | 96    82 |
| Total Franchised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 17,205    18,303 | 19,824 |
| Company owned: |  |  |
| Coldwell Banker®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 506 | 551    606 |
| Sotheby’s International Realty®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 44 | 44    44 |
| Corcoran®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 25 | 28    29 |
| Total Company Owned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 575 | 623    679 |

Source: Item 23 — RECEIPTS (FDD pages 75–276)

Question 19

What was the total revenue from franchised locations across all brands listed, including Corcoran, in 2024?

Accepted Answer

|  | (Unaudited) |  |
|---|---|---|
|  | 2024 2023 | 2022 |
| Franchised (domestic and international): |  |  |
| Century 21® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,986    11,972 | 13,611 |
| ERA® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,291    2,395 | 2,407 |
| Coldwell Banker®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,145    2,140 | 2,100 |
| Coldwell Banker Commercial® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 208 | 189    171 |
| Sotheby’s International Realty®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,065    1,071 | 1,035 |
| Better Homes and Gardens® Real Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |  |  |
|  | 386 | 440    418 |
| Corcoran®  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |  |  |
|  | 124 | 96    82 |
| Total Franchised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 17,205    18,303 | 19,824 |

Source: Item 23 — RECEIPTS (FDD pages 75–276)

Question 20

What were the total segment net revenues for Corcoran, including Franchise, Brokerage, and Title Groups?

Accepted Answer

|  |  |  | Owned |  |  |  |
|---|---|---|---|---|---|---|
|  |  | Franchise | Brokerage |  |  |  |
|  |  | Group | Group | Title Group |  | Totals |
| Net revenues from external customers |  | $  772 | $  5,606 | $530 | $  6,908 |  |
| Intersegment revenues (a)  . . . . . . . . . . . . . . . . . . . . . . . . | 373 |  | — | — | 373 |  |
| Segment net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,145 | 5,606 | 530 | 7,281 |  |  |

Source: Item 23 — RECEIPTS (FDD pages 75–276)

Question 21

What is the total short-term and long-term debt amount for Corcoran?

Accepted Answer

|  | Interest | Expiration | Principal | Premium and Debt |  |
|---|---|---|---|---|---|
|  | Rate | Date | Amount | Issuance Costs | Net Amount |
| Revolving Credit Facility (a) . . . . . . . . . . . . . . . . (b) | July 2027 (b) | $  490 | $                      * | $  490 |  |
| Senior Secured Second Lien Notes (c)  . . . . . . . . 7.00% | April 2030 | 640 | 10    630 |  |  |
| Senior Notes (d) . . . . . . . . . . . . . . . . . . . . . . . . . . 5.75% | January 2029 | 558 |  | —    558 |  |
| Senior Notes (d) . . . . . . . . . . . . . . . . . . . . . . . . . . 5.25% | April 2030 | 449 | 5    444 |  |  |
| Exchangeable Senior Notes (e) . . . . . . . . . . . . . . 0.25% | June 2026 | 403 | 4    399 |  |  |
| Total Short-Term & Long-Term Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |  |  | $  2,540 | $19  $  2,521 |  |
| Securitization obligations: (f) |  |  |  |  |  |
| Apple Ridge Funding LLC  . . . . . . . . . . . . . . . . . . . . . . |  | May 2025 | $  140 | $                      * | $  140 |

Source: Item 23 — RECEIPTS (FDD pages 75–276)

Question 22

What is the total value of Corcoran's assets when summing Level I, Level II, and Level III assets?

Accepted Answer

The following table summarizes fair value measurements by level at December 31, 2023 for assets and liabilities measured at fair value on a recurring basis:

Source: Item 23 — RECEIPTS (FDD pages 75–276)

Question 23

What types of actions are limited by the negative covenants in the indentures governing the Unsecured Notes for Corcoran?

Accepted Answer

illion, plus accrued interest to the respective repurchase dates.

The Company may redeem all or a portion of the 5.75% Senior Notes or 5.25% Senior Notes, as applicable, at the redemption price set forth in the applicable indenture governing such notes, commencing on January 15, 2024 and April 15, 2025, respectively. Prior to those dates, the Company may redeem the applicable notes at its option, in whole or in part, at a redemption price equal to 100% of the principal amount of such notes redeemed plus a "make-whole" premium as set forth in the applicable indenture governing such notes. In addition, prior to the dates noted above, the Company may redeem up to 40% of the notes from the proceeds of certain equity offerings as set forth in the applicable indenture governing such notes.

The Unsecured Notes are guaranteed on an unsecured senior basis by each domestic subsidiary of Anywhere Group that is a guarantor under the Senior Secured Credit Facility and Anywhere Group's outstanding debt securities and are guaranteed by Anywhere Holdings on an unsecured senior subordinated basis.

The indentures governing the Unsecured Notes contain various negative covenants that limit Anywhere Group's and its restricted subsidiaries' ability to take certain actions, which covenants are subject to a number of important exceptions and qualifications. These covenants include limitations on Anywhere Group's and its restricted subsidiaries' ability to (a) incur or guarantee additional indebtedness, or issue disqualified stock or preferred stock, (b) pay dividends or make distributions to their stockholders, (c)

Source: Item 23 — RECEIPTS (FDD pages 75–276)

Question 24

Besides Coldwell Banker and Sotheby's International Realty, what other brand name does Anywhere Advisors operate owned brokerage offices under, according to the description of Corcoran?

Accepted Answer

Anywhere Advisors ("Owned Brokerage Group")—operates a full-service real estate brokerage business with approximately 580 owned and operated brokerage offices with approximately 52,900 independent sales agents under the Coldwell Banker®, Corcoran® and Sotheby's International Realty® brand names in many of the largest metropolitan areas in the U.S. This segment also includes the Company's share of equity earnings or losses from the Company's minority-owned real estate auction joint venture.

Source: Item 23 — RECEIPTS (FDD pages 75–276)

Question 25

Does Better Homes and Gardens Real Estate LLC operate any other type of business besides real estate, which could differentiate it from Corcoran?

Accepted Answer

**4 Better Homes and Gardens Real Estate LLC ("BHGRE").** BHGRE offers residential real estate brokerage franchises to be operated under the service mark "Better Homes and Gardens® Real Estate." BHGRE has been offering real estate franchises since 2008. As of December 31, 2024, franchisees operated 368 Better Homes and Gardens® Real Estate brokerage offices in the United States. BHGRE has never offered franchises in any other type of business or operated any other type of business.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 26

Does Better Homes and Gardens Real Estate LLC own or operate any other type of business, which could differentiate it from Corcoran?

Accepted Answer

**4 Better Homes and Gardens Real Estate LLC ("BHGRE").** BHGRE offers residential real estate brokerage franchises to be operated under the service mark "Better Homes and Gardens® Real Estate." BHGRE has been offering real estate franchises since 2008. As of December 31, 2024, franchisees operated 368 Better Homes and Gardens® Real Estate brokerage offices in the United States. BHGRE has never offered franchises in any other type of business or operated any other type of business.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 27

What is the 'Better Homes and Gardens® Real Estate' service mark used by Better Homes and Gardens Real Estate LLC, and how does it compare to Corcoran's branding?

Accepted Answer

**4 Better Homes and Gardens Real Estate LLC ("BHGRE").** BHGRE offers residential real estate brokerage franchises to be operated under the service mark "Better Homes and Gardens® Real Estate." BHGRE has been offering real estate franchises since 2008. As of December 31, 2024, franchisees operated 368 Better Homes and Gardens® Real Estate brokerage offices in the United States. BHGRE has never offered franchises in any other type of business or operated any other type of business.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 28

What is the 'CENTURY 21®' service mark used by Century 21 Real Estate LLC, and how does it compare to Corcoran's branding?

Accepted Answer

Century 21 Real Estate LLC ("Century 21").** Century 21 offers residential real estate brokerage franchises to be operated under the service mark "CENTURY 21®." Century 21 began granting real estate franchises directly to brokers in 1995. From 1972 until 1995, Century 21 only granted subfranchises. These subfranchises authorized the grantees, called subfranchisors, to offer CENTURY 21® franchises to real estate brokers within protected territories. In 1995, Century 21 merged with the United States subfranchisors and in 1996 began selling CENTURY 21® franchises directly. As of December 31, 2024, franchisees operated 1,734 CENTURY 21 real estate brokerage offices in the United States. Century 21 does not own or operate any real estate brokerage offices in the United States and has never granted franchises in other lines of business.

We offer franchises for real estate sales offices in the United States to owners of existing real estate brokerage businesses and in certain situations we may offer a franchise to newly formed real estate brokerages as described below in this Item 1 (the "Franchise" or the "Business") The Franchise permits you to offer residential and commercial real estate brokerage services from a specified office location (the "Main Office") and other authorized office locations (the Main Office and other authorized office locations collectively referred to as a "Corcoran Office" or "Office"), using the Corcoran® service mark and other trademarks, service marks, designs, logos and other commercial symbols we periodically designate (collectively, the "Marks"), and using a system that we have developed which includes access to brand specific systems, productivity resources, basic business development support, education, real estate referral and broker communications procedures, marketing and advertising services, products and other support funding by our brand marketing fund ("Brand Marketing Fund" or "BMF") and various other items (the "System"), all in accordance with the terms of our Real Estate Franchise Agreement ("Franchise Agreement") and the mandatory provisions of our Policies and Procedures Manual and the Brand Standards (collectively referred to as the "P&P Manual"). The franchises offered under the Corcoran® System are not in any way associated with Corcoran Sunshine (described below) and Corcoran Sunshine is not part of the System. Nothing limits Corcoran Sunshine's ability to operate or open an office anywhere in the U.S. or internationally.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 29

What is the 'Coldwell Banker Commercial®' service mark used by Coldwell Banker Real Estate LLC, and how does it compare to Corcoran's branding?

Accepted Answer

**2 Coldwell Banker Real Estate LLC ("Coldwell Banker").** Coldwell Banker offers residential real estate brokerage franchises to be operated under the service mark "Coldwell Banker®" and commercial real estate brokerage franchises to be operated under the service mark "Coldwell Banker Commercial®." Coldwell Banker has been offering residential real estate franchises since 1982 and commercial real estate franchises since 1998. As of December 31, 2024, franchisees operated 1,309 Coldwell Banker® residential real estate brokerage franchises and 135 Coldwell Banker Commercial® real estate brokerage offices in the United States. Coldwell Banker has never offered franchises in any other type of business or operated any other type of business.

We offer franchises for real estate sales offices in the United States to owners of existing real estate brokerage businesses and in certain situations we may offer a franchise to newly formed real estate brokerages as described below in this Item 1 (the "Franchise" or the "Business") The Franchise permits you to offer residential and commercial real estate brokerage services from a specified office location (the "Main Office") and other authorized office locations (the Main Office and other authorized office locations collectively referred to as a "Corcoran Office" or "Office"), using the Corcoran® service mark and other trademarks, service marks, designs, logos and other commercial symbols we periodically designate (collectively, the "Marks"), and using a system that we have developed which includes access to brand specific systems, productivity resources, basic business development support, education, real estate referral and broker communications procedures, marketing and advertising services, products and other support funding by our brand marketing fund ("Brand Marketing Fund" or "BMF") and various other items (the "System"), all in accordance with the terms of our Real Estate Franchise Agreement ("Franchise Agreement") and the mandatory provisions of our Policies and Procedures Manual and the Brand Standards (collectively referred to as the "P&P Manual"). The franchises offered under the Corcoran® System are not in any way associated with Corcoran Sunshine (described below) and Corcoran Sunshine is not part of the System. Nothing limits Corcoran Sunshine's ability to operate or open an office anywhere in the U.S. or internationally.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 30

Does Coldwell Banker Real Estate LLC operate any other type of business besides real estate, which could differentiate it from Corcoran?

Accepted Answer

**2 Coldwell Banker Real Estate LLC ("Coldwell Banker").** Coldwell Banker offers residential real estate brokerage franchises to be operated under the service mark "Coldwell Banker®" and commercial real estate brokerage franchises to be operated under the service mark "Coldwell Banker Commercial®." Coldwell Banker has been offering residential real estate franchises since 1982 and commercial real estate franchises since 1998. As of December 31, 2024, franchisees operated 1,309 Coldwell Banker® residential real estate brokerage franchises and 135 Coldwell Banker Commercial® real estate brokerage offices in the United States. Coldwell Banker has never offered franchises in any other type of business or operated any other type of business.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 31

Does Coldwell Banker Real Estate LLC own or operate any other type of business, which could differentiate it from Corcoran?

Accepted Answer

**2 Coldwell Banker Real Estate LLC ("Coldwell Banker").** Coldwell Banker offers residential real estate brokerage franchises to be operated under the service mark "Coldwell Banker®" and commercial real estate brokerage franchises to be operated under the service mark "Coldwell Banker Commercial®." Coldwell Banker has been offering residential real estate franchises since 1982 and commercial real estate franchises since 1998. As of December 31, 2024, franchisees operated 1,309 Coldwell Banker® residential real estate brokerage franchises and 135 Coldwell Banker Commercial® real estate brokerage offices in the United States. Coldwell Banker has never offered franchises in any other type of business or operated any other type of business.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 32

Does Coldwell Banker Real Estate LLC operate any other type of business, which could differentiate it from Corcoran?

Accepted Answer

**2 Coldwell Banker Real Estate LLC ("Coldwell Banker").** Coldwell Banker offers residential real estate brokerage franchises to be operated under the service mark "Coldwell Banker®" and commercial real estate brokerage franchises to be operated under the service mark "Coldwell Banker Commercial®." Coldwell Banker has been offering residential real estate franchises since 1982 and commercial real estate franchises since 1998. As of December 31, 2024, franchisees operated 1,309 Coldwell Banker® residential real estate brokerage franchises and 135 Coldwell Banker Commercial® real estate brokerage offices in the United States. Coldwell Banker has never offered franchises in any other type of business or operated any other type of business.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 33

What is the 'Coldwell Banker®' service mark used by Coldwell Banker Real Estate LLC, and how does it compare to Corcoran's branding?

Accepted Answer

**2 Coldwell Banker Real Estate LLC ("Coldwell Banker").** Coldwell Banker offers residential real estate brokerage franchises to be operated under the service mark "Coldwell Banker®" and commercial real estate brokerage franchises to be operated under the service mark "Coldwell Banker Commercial®." Coldwell Banker has been offering residential real estate franchises since 1982 and commercial real estate franchises since 1998. As of December 31, 2024, franchisees operated 1,309 Coldwell Banker® residential real estate brokerage franchises and 135 Coldwell Banker Commercial® real estate brokerage offices in the United States. Coldwell Banker has never offered franchises in any other type of business or operated any other type of business.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 34

Does ERA Franchise Systems LLC operate any other type of business besides real estate, which could differentiate it from Corcoran?

Accepted Answer

**3 ERA Franchise Systems LLC ("ERA").** ERA offers residential real estate brokerage franchises to be operated under the service mark "ERA®." In 2010, ERA began offering franchises to be operated under the service mark "ERA Powered®," allowing certain qualified applicants to operate franchises using the ERA tools and systems and ERA service marks, including "ERA Powered®," while maintaining their own trade name as the prominent trade name in their company identity. References to ERA® real estate brokerage offices may also mean ERA Powered® brokerage offices. ERA, directly and through its predecessor, has been offering real estate brokerage franchises since 1972. As of December 31, 2024, franchisees operated 444 ERA® Real Estate and ERA Powered® brokerage offices in the United States. ERA has never offered franchises in any other type of business or operated any other type of business.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 35

Does ERA Franchise Systems LLC own or operate any other type of business, which could differentiate it from Corcoran?

Accepted Answer

**3 ERA Franchise Systems LLC ("ERA").** ERA offers residential real estate brokerage franchises to be operated under the service mark "ERA®." In 2010, ERA began offering franchises to be operated under the service mark "ERA Powered®," allowing certain qualified applicants to operate franchises using the ERA tools and systems and ERA service marks, including "ERA Powered®," while maintaining their own trade name as the prominent trade name in their company identity. References to ERA® real estate brokerage offices may also mean ERA Powered® brokerage offices. ERA, directly and through its predecessor, has been offering real estate brokerage franchises since 1972. As of December 31, 2024, franchisees operated 444 ERA® Real Estate and ERA Powered® brokerage offices in the United States. ERA has never offered franchises in any other type of business or operated any other type of business.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 36

How does the 'ERA Powered®' franchise option offered by ERA Franchise Systems LLC compare to the franchise options offered by Corcoran?

Accepted Answer

ERA Franchise Systems LLC ("ERA"). ERA offers residential real estate brokerage franchises to be operated under the service mark "ERA®." In 2010, ERA began offering franchises to be operated under the service mark "ERA Powered®," allowing certain qualified applicants to operate franchises using the ERA tools and systems and ERA service marks, including "ERA Powered®," while maintaining their own trade name as the prominent trade name in their company identity. References to ERA® real estate brokerage offices may also mean ERA Powered® brokerage offices. ERA, directly and through its predecessor, has been offering real estate brokerage franchises since 1972. As of December 31, 2024, franchisees operated 444 ERA® Real Estate and ERA Powered® brokerage offices in the United States. ERA has never offered franchises in any other type of business or operated any other type of business.

We offer franchises for real estate sales offices in the United States to owners of existing real estate brokerage businesses and in certain situations we may offer a franchise to newly formed real estate brokerages as described below in this Item 1 (the "Franchise" or the "Business") The Franchise permits you to offer residential and commercial real estate brokerage services from a specified office location (the "Main Office") and other authorized office locations (the Main Office and other authorized office locations collectively referred to as a "Corcoran Office" or "Office"), using the Corcoran® service mark and other trademarks, service marks, designs, logos and other commercial symbols we periodically designate (collectively, the "Marks"), and using a system that we have developed which includes access to brand specific systems, productivity resources, basic business development support, education, real estate referral and broker communications procedures, marketing and advertising services, products and other support funding by our brand marketing fund ("Brand Marketing Fund" or "BMF") and various other items (the "System"), all in accordance with the terms of our Real Estate Franchise Agreement ("Franchise Agreement") and the mandatory provisions of our Policies and Procedures Manual and the Brand Standards (collectively referred to as the "P&P Manual"). The franchises offered under the Corcoran® System are not in any way associated with Corcoran Sunshine (described below) and Corcoran Sunshine is not part of the System. Nothing limits Corcoran Sunshine's ability to operate or open an office anywhere in the U.S. or internationally.

Usually, the Franchise is granted to owners of existing real estate brokerage businesses for conversion to a franchised office. The existing real estate brokerage businesses, however, must meet certain eligibility criteria which are listed below (the "Criteria").

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 37

What is the 'ERA®' service mark used by ERA Franchise Systems LLC, and how does it compare to Corcoran's branding?

Accepted Answer

**3 ERA Franchise Systems LLC ("ERA").** ERA offers residential real estate brokerage franchises to be operated under the service mark "ERA®." In 2010, ERA began offering franchises to be operated under the service mark "ERA Powered®," allowing certain qualified applicants to operate franchises using the ERA tools and systems and ERA service marks, including "ERA Powered®," while maintaining their own trade name as the prominent trade name in their company identity. References to ERA® real estate brokerage offices may also mean ERA Powered® brokerage offices. ERA, directly and through its predecessor, has been offering real estate brokerage franchises since 1972. As of December 31, 2024, franchisees operated 444 ERA® Real Estate and ERA Powered® brokerage offices in the United States. ERA has never offered franchises in any other type of business or operated any other type of business.

We offer franchises for real estate sales offices in the United States to owners of existing real estate brokerage businesses and in certain situations we may offer a franchise to newly formed real estate brokerages as described below in this Item 1 (the "Franchise" or the "Business") The Franchise permits you to offer residential and commercial real estate brokerage services from a specified office location (the "Main Office") and other authorized office locations (the Main Office and other authorized office locations collectively referred to as a "Corcoran Office" or "Office"), using the Corcoran® service mark and other trademarks, service marks, designs, logos and other commercial symbols we periodically designate (collectively, the "Marks"), and using a system that we have developed which includes access to brand specific systems, productivity resources, basic business development support, education, real estate referral and broker communications procedures, marketing and advertising services, products and other support funding by our brand marketing fund ("Brand Marketing Fund" or "BMF") and various other items (the "System"), all in accordance with the terms of our Real Estate Franchise Agreement ("Franchise Agreement") and the mandatory provisions of our Policies and Procedures Manual and the Brand Standards (collectively referred to as the "P&P Manual"). The franchises offered under the Corcoran® System are not in any way associated with Corcoran Sunshine (described below) and Corcoran Sunshine is not part of the System. Nothing limits Corcoran Sunshine's ability to operate or open an office anywhere in the U.S. or internationally.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 38

How does the fact that Better Homes and Gardens Real Estate LLC has never offered franchises in any other type of business compare to Corcoran?

Accepted Answer

**4 Better Homes and Gardens Real Estate LLC ("BHGRE").** BHGRE offers residential real estate brokerage franchises to be operated under the service mark "Better Homes and Gardens® Real Estate." BHGRE has been offering real estate franchises since 2008. As of December 31, 2024, franchisees operated 368 Better Homes and Gardens® Real Estate brokerage offices in the United States. BHGRE has never offered franchises in any other type of business or operated any other type of business.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 39

How does the fact that Better Homes and Gardens Real Estate LLC has never operated any other type of business compare to Corcoran?

Accepted Answer

**4 Better Homes and Gardens Real Estate LLC ("BHGRE").** BHGRE offers residential real estate brokerage franchises to be operated under the service mark "Better Homes and Gardens® Real Estate." BHGRE has been offering real estate franchises since 2008. As of December 31, 2024, franchisees operated 368 Better Homes and Gardens® Real Estate brokerage offices in the United States. BHGRE has never offered franchises in any other type of business or operated any other type of business.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 40

How does the fact that Century 21 Real Estate LLC does not own or operate any real estate brokerage offices in the United States compare to Corcoran's business model?

Accepted Answer

Century 21 Real Estate LLC ("Century 21"). Century 21 offers residential real estate brokerage franchises to be operated under the service mark "CENTURY 21®." Century 21 began granting real estate franchises directly to brokers in 1995. From 1972 until 1995, Century 21 only granted subfranchises. These subfranchises authorized the grantees, called subfranchisors, to offer CENTURY 21® franchises to real estate brokers within protected territories. In 1995, Century 21 merged with the United States subfranchisors and in 1996 began selling CENTURY 21® franchises directly. As of December 31, 2024, franchisees operated 1,734 CENTURY 21 real estate brokerage offices in the United States. Century 21 does not own or operate any real estate brokerage offices in the United States and has never granted franchises in other lines of business.

As of December 31, 2024, Anywhere Advisors owned and operated 505 Coldwell Banker® residential real estate brokerage offices, 1 Coldwell Banker Commercial® real estate brokerage offices, and 44 Sotheby's International Realty® real estate brokerage offices. As of December 31, 2024 NRT NY owned and operated 25 Corcoran® real estate brokerage offices and 1 Corcoran Sunshine® office. Anywhere Advisors and NRT NY operate mainly in metropolitan areas and compete directly with franchisees in the areas in which they operate. Anywhere Advisors and NRT NY may compete with you and other franchisees in your market to solicit customers, independent sales associates, managers, employees, and other business, including relationships with title, mortgage, escrow and relocation services. There are no restrictions on Anywhere Advisors and NRT NY regarding competition with franchisees.

Each Real Estate Affiliate will offer franchises using its own franchise disclosure document, and there may be additional Real Estate Affiliates formed in the future. Because the Real Estate Affiliates may establish brokerages in close proximity to your Corcoran® office locations, you may face competition from any of these franchised brokerage systems (or new brokerage franchise systems) and their franchisees for customers, independent sales associates, managers, employees and other business, including relationships with title, mortgage, escrow and relocation services. Each Real Estate Affiliate has total discretion where to permit its franchisees to operate and has the express right to act in its own interest and the interest of its franchise system in authorizing, conducting and supporting businesses that will compete with you and our franchisees.

As of December 31, 2024, there were approximately 18,000 real estate brokerage offices operating under our Marks and the marks of the Real Estate Affiliates worldwide.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 41

How does the fact that Coldwell Banker Real Estate LLC has never offered franchises in any other type of business compare to Corcoran?

Accepted Answer

of business.

**2 Coldwell Banker Real Estate LLC ("Coldwell Banker").** Coldwell Banker offers residential real estate brokerage franchises to be operated under the service mark "Coldwell Banker®" and commercial real estate brokerage franchises to be operated under the service mark "Coldwell Banker Commercial®." Coldwell Banker has been offering residential real estate franchises since 1982 and commercial real estate franchises since 1998. As of December 31, 2024, franchisees operated 1,309 Coldwell Banker® residential real estate brokerage franchises and 135 Coldwell Banker Commercial® real estate brokerage offices in the United States. Coldwell Banker has never offered franchises in any other type of business or operated any other type of business.

**3 ERA Franchise Systems LLC ("ERA").** ERA offers residential real estate brokerage franchises to be operated under the service mark "ERA®." In 2010, ERA began offering franchises to be operated under the service mark "ERA Powered®," allowing certain qualified applicants to operate franchises using the ERA tools and systems and ERA service marks, including "ERA Powered®," while maintaining their own trade name as the prominent trade name in their company identity.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 42

How does the fact that Coldwell Banker Real Estate LLC has never operated any other type of business compare to Corcoran?

Accepted Answer

**2 Coldwell Banker Real Estate LLC ("Coldwell Banker").** Coldwell Banker offers residential real estate brokerage franchises to be operated under the service mark "Coldwell Banker®" and commercial real estate brokerage franchises to be operated under the service mark "Coldwell Banker Commercial®." Coldwell Banker has been offering residential real estate franchises since 1982 and commercial real estate franchises since 1998. As of December 31, 2024, franchisees operated 1,309 Coldwell Banker® residential real estate brokerage franchises and 135 Coldwell Banker Commercial® real estate brokerage offices in the United States. Coldwell Banker has never offered franchises in any other type of business or operated any other type of business.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 43

How does the fact that ERA Franchise Systems LLC has never offered franchises in any other type of business compare to Corcoran?

Accepted Answer

of business.

**3 ERA Franchise Systems LLC ("ERA").** ERA offers residential real estate brokerage franchises to be operated under the service mark "ERA®." In 2010, ERA began offering franchises to be operated under the service mark "ERA Powered®," allowing certain qualified applicants to operate franchises using the ERA tools and systems and ERA service marks, including "ERA Powered®," while maintaining their own trade name as the prominent trade name in their company identity. References to ERA® real estate brokerage offices may also mean ERA Powered® brokerage offices. ERA, directly and through its predecessor, has been offering real estate brokerage franchises since 1972. As of December 31, 2024, franchisees operated 444 ERA® Real Estate and ERA Powered® brokerage offices in the United States. ERA has never offered franchises in any other type of business or operated any other

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 44

How does the fact that ERA Franchise Systems LLC has never operated any other type of business compare to Corcoran?

Accepted Answer

We began offering franchises for real estate brokerage offices in January 2019. We have never offered franchises in any other lines of business, nor owned or operated real estate brokerage offices of the type described in this disclosure document, although our Related Parties (defined below and in the Franchise Agreement) do operate such offices (as described below).

"Related Parties," means, with respect to a particular "Person" (defined in the Franchise Agreement as "an individual, a partnership, a trust, a corporation, a limited liability company, an association and any other incorporated or unincorporated organization or entity"), a Person who, directly or indirectly, owns or controls that Person is owned or controlled by a Person, or is under common control with that Person. Control, in this context, means the possession of executive power to direct or to cause the direction of the management and policies of a Person, whether through voting power, ownership, by contract or otherwise.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 45

How does the fact that Sotheby's International Realty Affiliates LLC has never offered franchises in any other type of business compare to Corcoran?

Accepted Answer

**3 ERA Franchise Systems LLC ("ERA").** ERA offers residential real estate brokerage franchises to be operated under the service mark "ERA®." In 2010, ERA began offering franchises to be operated under the service mark "ERA Powered®," allowing certain qualified applicants to operate franchises using the ERA tools and systems and ERA service marks, including "ERA Powered®," while maintaining their own trade name as the prominent trade name in their company identity. References to ERA® real estate brokerage offices may also mean ERA Powered® brokerage offices. ERA, directly and through its predecessor, has been offering real estate brokerage franchises since 1972. As of December 31, 2024, franchisees operated 444 ERA® Real Estate and ERA Powered® brokerage offices in the United States. ERA has never offered franchises in any other type of business or operated any other type of business.

**4 Better Homes and Gardens Real Estate LLC ("BHGRE").** BHGRE offers residential real estate brokerage franchises to be operated under the service mark "Better Homes and Gardens® Real Estate." BHGRE has been offering real estate franchises since 2008. As of December 31, 2024, franchisees operated 368 Better Homes and Gardens® Real Estate brokerage offices in the United States. BHGRE has never offered franchises in any other type of business or operated any other type of business.

**5 Sotheby's International Realty Affiliates LLC ("SIR")**. SIR offers residential real estate brokerage franchises to be operated under the service mark "Sotheby's International Realty®." SIR has been offering real estate franchises since 2004. As of December 31, 2024, franchisees operated 666 Sotheby's International Realty® brokerage offices in the United States. SIR has never offered franchises in any other type of business or operated any other type of business.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 46

How does the fact that Sotheby's International Realty Affiliates LLC has never operated any other type of business compare to Corcoran?

Accepted Answer

**5 Sotheby's International Realty Affiliates LLC ("SIR")**. SIR offers residential real estate brokerage franchises to be operated under the service mark "Sotheby's International Realty®." SIR has been offering real estate franchises since 2004. As of December 31, 2024, franchisees operated 666 Sotheby's International Realty® brokerage offices in the United States. SIR has never offered franchises in any other type of business or operated any other type of business.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 47

Can other Corcoran franchisees pay different Brand Marketing Fund (BMF) amounts?

Accepted Answer

part of the advertising fund for joint or collective advertising campaigns with our Related Parties.

You must make monthly contributions of 1.00% of your Gross Revenue, up to and including \$5,000,000; 0.75% of all Gross Revenue between \$5,000,001 and \$10,000,000; and 0.50% above \$10,000,000 to the BMF. On January 1st of each year, your Gross Revenue, for purposes of your BMF Contribution, will be reset, and you will pay a BMF Contribution of 1% on all Gross Revenue up to and including \$5,000,000, and your rates will adjust accordingly thereafter based on your Gross Revenue.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 48–57)

Question 48

How does the franchising history of Century 21 Real Estate LLC's predecessor compare to Corcoran's franchising history?

Accepted Answer

| Real Estate Affiliates | Began or will Begin Franchising | Predecessor Began Franchising | |---|---|---| | Century 21 Real Estate LLC1 | 1995 | 1972 | #### **ITEM 1. THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES** To simplify the language in this disclosure document, "we," "our," or "us" means Corcoran Group LLC, the franchisor. "You" means the person or entity that buys the franchise, the franchisee. If the franchisee is a corporation, partnership or other entity, "you" includes the franchisee's owners. #### **The Franchisor, its Parents and Affiliates.** We are a Delaware limited liability company, originally formed on October 1, 2015. We intend to do business under our corporate name and the Corcoran® name, and do not intend to do business under any other name. We have no predecessors. We are a wholly owned subsidiary of Anywhere Real Estate Services Group LLC (f/k/a Realogy Services Group LLC ("Anywhere Services Group"), a Delaware limited liability company, a direct wholly owned subsidiary of Anywhere Real Estate Group LLC, a Delaware limited liability company (f/k/a Realogy Group LLC) ("Anywhere Group"). Anywhere Real Estate Group is a direct wholly owned subsidiary of Anywhere Intermediate Holdings LLC (f/k/a Realogy Intermediate Holdings LLC) ("Anywhere Intermediate"), a Delaware limited liability company, and a direct wholly owned subsidiary of Anywhere Real Estate Inc. (f/k/a Realogy Holdings Corp.), a Delaware corporation ("Anywhere"). Anywhere Brands LLC (f/k/a Realogy Franchise Group LLC) ("Anywhere Brands"), a Delaware limited liability company, which is a wholly owned subsidiary of Anywhere Services Group, provides to us administrative and other services and Anywhere Services Group and its subsidiaries provide certain shared services as described below. Our principal business address, as well as the principal business address of Anywhere Brands, Anywhere Services Group, Anywhere Group, Anywhere Intermediate and Anywhere, is 175 Park Avenue, Madison, New Jersey 07940. There are no predecessors that need to be disclosed in this Item 1. Century 21 Real Estate LLC ("Century 21"). Century 21 offers residential real estate brokerage franchises to be operated under the service mark "CENTURY 21®." Century 21 began granting real estate franchises directly to brokers in 1995. From 1972 until 1995, Century 21 only granted subfranchises. These subfranchises authorized the grantees, called subfranchisors, to offer CENTURY 21® franchises to real estate brokers within protected territories. In 1995, Century 21 merged with the United States subfranchisors and in 1996 began selling CENTURY 21® franchises directly. As of December 31, 2024, franchisees operated 1,734 CENTURY 21 real estate brokerage offices in the United States. Century 21 does not own or operate any real estate brokerage offices in the United States and has never granted franchises in other lines of business. Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 49

How does the franchising history of ERA Franchise Systems LLC's predecessor compare to Corcoran's franchising history?

Accepted Answer

.**

We are a Delaware limited liability company, originally formed on October 1, 2015. We intend to do business under our corporate name and the Corcoran® name, and do not intend to do business under any other name. We have no predecessors. We are a wholly owned subsidiary of Anywhere Real Estate Services Group LLC (f/k/a Realogy Services Group LLC ("Anywhere Services Group"), a Delaware limited liability company, a direct

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 50

What is the initial franchise fee for a Corcoran branch office (Item 5) and how does it compare to the estimated initial investment for real estate for a conversion office (Item 7)?

Accepted Answer

e have the right to vary, negotiate or reduce the initial franchise fee. The initial franchise fee for your Main Office is \$25,000 and the initial franchise fee for your Branch Office is \$10,000. The one-time fee for a Limited Purpose Office is \$2,000. We have right to reduce or waive the initial franchise fee for eligible franchisees pursuant to our franchise sales incentive program. As of the issuance date of this disclosure document, the initial fra

Question 51

What is the initial franchise fee for a Corcoran branch office (Item 5) and how does it compare to the estimated initial investment for a conversion office (Item 7), considering the various methods of payment?

Accepted Answer

The initial franchise fee for your Main Office is $25,000 and the initial franchise fee for your Branch Office is $10,000.

| Item | Amounts | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Total Initial Investment for |
| Conversion Office (from |
| Conversion Office table |
| above) | $56,050 - $358,100 |  |  |  |

Question 52

What is the initial franchise fee for a Corcoran branch office (Item 5) and how does it compare to the estimated initial investment for a conversion office (Item 7), considering the timing of payments?

Accepted Answer

ired to be disclosed in this Item.

#### **ITEM 5. INITIAL FEES**

If you are purchasing a Franchise from us, you will pay us an initial franchise fee of \$25,000 for the Main Office when you sign the Franchise Agreement, and an initial franchise fee of \$10,000 for a Branch Office when the Branch Office is added to the Franchise Agreement. If we approve you for a Corcoran® franchise, we will countersign the Franchise Agreement.

The initial franchise fee is non-refundable and is fully earned by us upon our countersignature. As further described in Item 1, we have a franchise sales incentive program under which we may waive or reduce the initial franchise fee and provide other business benefits for prospective franchisees that meet the eligibility requirements. As of the issuance date of this disclosure document, the initial franchise fee for the Main Office under the program is waived.

If you are an existing franchisee and acquire another qualifying real estate brokerage business that you combine into your Office(s), without adding a new Branch Office, we will not charge you an additional initial franchise fee. If you are approved to open additional Corcoran® Branch Office(s), you will pay the initial franchise fee and sign a Location Addendum to your Franchise Agreement to amend it to reflect the existence and location of the additional Branch Office(s) (see Location Addendum, Exhibit C-1).

Except as described above, we do not refund any initial franchise fees, except that we will refund your initial franchise fee if we do not accept you as a franchisee. You must pay us any franchise fees in a lump sum.

Question 53

What is the initial franchise fee for a Corcoran branch office (Item 5) and how does it compare to the estimated initial investment for a conversion office (Item 7), considering the various methods of payment and the timing of payments?

Accepted Answer

[Item 5: INITIAL FEES]

#### **ITEM 5. INITIAL FEES**

If you are purchasing a Franchise from us, you will pay us an initial franchise fee of $25,000 for the Main Office when you sign the Franchise Agreement, and an initial franchise fee of $10,000 for a Branch Office when the Branch Office is added to the Franchise Agreement. If we approve you for a Corcoran® franchise, we will countersign the Franchise Agreement.

The initial franchise fee is non-refundable and is fully earned by us upon our countersignature. As further described in Item 1, we have a franchise sales incentive program under which we may waive or reduce the initial franchise fee and provide other business benefits for prospective franchisees that meet the eligibility requirements. As of the issuance date of this disclosure document, the initial franchise fee for the Main Office under the program is waived.

If you are an existing franchisee and acquire another qualifying real estate brokerage business that you combine into your Office(s), without adding a new Branch Office, we will not charge you an additional initial franchise fee. If you are approved to open additional Corcoran® Branch Office(s), you will pay the initial franchise fee and sign a Location Addendum to your Franchise Agreement to amend it to reflect the existence and location of the additional Branch Office(s) (see Location Addendum, Exhibit C-1).

Except as described above, we do not refund any initial franchise fees, except that we will refund your initial franchise fee if we do not accept you as a franchisee. You must pay us any franchise fees in a lump sum. We have the right to vary, waive (in whole or in part), reduce, negotiate or make an exception to our published fee structure and/or payment terms for any reason, including, without limitation, large or otherwise significant transactions. We also have the right to negotiate conversion funding or other incentives that may vary in type, amount and duration. Our exercise of these rights may have the effect of directly or indirectly decreasing the initial franchise fee. See Item 10.

If we permit you to open a Limited Purpose Office, we will charge you a one-time non-refundable fee of $2,000, and you will be required to sign a Limited Purpose Office Addendum. See Item 1.

| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee [3] | $5,000 - $25,000 | Lump sum or financed | Upon signing the Franchise Agreement | To us |
| Total Initial Investment for |
| Conversion Office (from |
| Conversion Office table |
| above) | $56,050 - $358,100 |  |  |  |

Question 54

What is the initial franchise fee for a Corcoran branch office (Item 5) and how does it compare to the minimum estimated initial investment for real estate for a conversion office (Item 7)?

Accepted Answer

e have the right to vary, negotiate or reduce the initial franchise fee. The initial franchise fee for your Main Office is \$25,000 and the initial franchise fee for your Branch Office is \$10,000. The one-time fee for a Limited Purpose Office is \$2,000. We have right to reduce or waive the initial franchise fee for eligible franchisees pursuant to our franchise sales incentive program.

Question 55

What is the initial franchise fee for a Corcoran branch office (Item 5), and how does it compare to the potential financing options for growth opportunities (Item 10)?

Accepted Answer

[Item 5: INITIAL FEES]

#### **ITEM 5. INITIAL FEES**

If you are purchasing a Franchise from us, you will pay us an initial franchise fee of $25,000 for the Main Office when you sign the Franchise Agreement, and an initial franchise fee of $10,000 for a Branch Office when the Branch Office is added to the Franchise Agreement. If we approve you for a Corcoran® franchise, we will countersign the Franchise Agreement.

The initial franchise fee is non-refundable and is fully earned by us upon our countersignature. As further described in Item 1, we have a franchise sales incentive program under which we may waive or reduce the initial franchise fee and provide other business benefits for prospective franchisees that meet the eligibility requirements. As of the issuance date of this disclosure document, the initial franchise fee for the Main Office under the program is waived.

If you are an existing franchisee and acquire another qualifying real estate brokerage business that you combine into your Office(s), without adding a new Branch Office, we will not charge you an additional initial franchise fee. If you are approved to open additional Corcoran® Branch Office(s), you will pay the initial franchise fee and sign a Location Addendum to your Franchise Agreement to amend it to reflect the existence and location of the additional Branch Office(s) (see Location Addendum, Exhibit C-1).

Except as described above, we do not refund any initial franchise fees, except that we will refund your initial franchise fee if we do not accept you as a franchisee. You must pay us any franchise fees in a lump sum. We have the right to vary, waive (in whole or in part), reduce, negotiate or make an exception to our published fee structure and/or payment terms for any reason, including, without limitation, large or otherwise significant transactions. We also have the right to negotiate conversion funding or other incentives that may vary in type, amount and duration. Our exercise of these rights may have the effect of directly or indirectly decreasing the initial franchise fee. See Item 10.

If we permit you to open a Limited Purpose Office, we will charge you a one-time non-refundable fee of $2,000, and you will be required to sign a Limited Purpose Office Addendum. See Item 1.

---

[Item 7: ESTIMATED INITIAL INVESTMENT]

#### **Notes to first Item 7 table above (Conversion Office):**

We or a Related Party may offer financing to assist you in paying certain conversion or opening costs associated with your affiliation with the System, or offer financing to you for acquisition or recruitment opportunities or other business related expenses, if you are an existing franchisee.

Financed amounts will vary under the circumstances.

Any financing will be offered through our Conversion Promissory Note (as defined in Item 10).

See Item 10 for our current financing terms.

Question 56

What is the initial franchise fee for a Corcoran Main Office (Item 5), and how does it compare to the estimated initial investment for a conversion office (Item 7), considering the method of payment for each expenditure type?

Accepted Answer

[Item 5: INITIAL FEES]

#### **ITEM 5. INITIAL FEES**

If you are purchasing a Franchise from us, you will pay us an initial franchise fee of $25,000 for the Main Office when you sign the Franchise Agreement, and an initial franchise fee of $10,000 for a Branch Office when the Branch Office is added to the Franchise Agreement. If we approve you for a Corcoran® franchise, we will countersign the Franchise Agreement.

The initial franchise fee is non-refundable and is fully earned by us upon our countersignature. As further described in Item 1, we have a franchise sales incentive program under which we may waive or reduce the initial franchise fee and provide other business benefits for prospective franchisees that meet the eligibility requirements. As of the issuance date of this disclosure document, the initial franchise fee for the Main Office under the program is waived.

| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Real Estate [4] | $0 - $20,800 | Lump sum or open account | As incurred | Suppliers, Landlord |
| Leasehold Improvements [5] | $0 - $105,000 | Progress Payments | Before Opening | Contractors |
| Building Signs [6] | $700 - $20,000 | Lump sum, leased or financed | Within 60 days of signing the Franchise Agreement | Suppliers |
| Yard Signs, Frames/Posts [7] | $6,700 - $12,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Open House Signs [8] | $900 - $2,500 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Miscellaneous Rider Signs | $200 - $400 | Lump sum or | Within 30 days of signing | Suppliers |
| [9] |  | open account | the Franchise Agreement |  |
| Name Badges [10] | $400 - $500 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Miscellaneous [11] | $250 - $500 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Printed Materials [12] | $5,000 - $25,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Insurance [13] | $500 - $4,000 | Lump sum or open account | Before Opening | Rated carriers |
| Legal Expenses [14] | $0 - $4,000 | As incurred | Before Opening | Attorneys |
| Orientation – Travel Expenses and Costs [15] | $400 - $5,400 | As incurred | Within 12 months of the Opening Date of your Main Office | Airlines, restaurants, hotels, etc. |
| Computer Equipment for Electronic Data Transfer System [16] | $5,000 - $10,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Website [17] | $1,000 - $50,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Multiple Listing Services | $0 - $3,000 | As incurred | Within 30 days of signing | Suppliers or to us |
| [17] |  |  | the Franchise Agreement |  |
| Data Feed Transmission [18] | $0 - $5,000 | Lump sum or open account | As incurred | Suppliers |
| Additional Launch Expenses (Grand Opening) [19] | $3,000 - $5,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Advertising Agency, Media, Entertainment |
| Signature Elements [20] | $12,000 - $20,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Additional Funds | $15,000 - $40,000 | As incurred | As incurred | Employees, |
| (first 3 months after opening) |  |  |  | Suppliers, |
| [21] |  |  |  | Utilities, Us |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
| Total | $56,050 – $358,100 |  |  |  |

Question 57

What is the initial franchise fee for a Corcoran Main Office (Item 5), and how does it compare to the estimated initial investment for a conversion office (Item 7), considering the method of payment for each expenditure type and the timing of payments, as well as the potential for financing?

Accepted Answer

[Item 5: INITIAL FEES]

#### **ITEM 5. INITIAL FEES**

If you are purchasing a Franchise from us, you will pay us an initial franchise fee of $25,000 for the Main Office when you sign the Franchise Agreement, and an initial franchise fee of $10,000 for a Branch Office when the Branch Office is added to the Franchise Agreement. If we approve you for a Corcoran® franchise, we will countersign the Franchise Agreement.

The initial franchise fee is non-refundable and is fully earned by us upon our countersignature. As further described in Item 1, we have a franchise sales incentive program under which we may waive or reduce the initial franchise fee and provide other business benefits for prospective franchisees that meet the eligibility requirements. As of the issuance date of this disclosure document, the initial franchise fee for the Main Office under the program is waived.

If you are an existing franchisee and acquire another qualifying real estate brokerage business that you combine into your Office(s), without adding a new Branch Office, we will not charge you an additional initial franchise fee. If you are approved to open additional Corcoran® Branch Office(s), you will pay the initial franchise fee and sign a Location Addendum to your Franchise Agreement to amend it to reflect the existence and location of the additional Branch Office(s) (see Location Addendum, Exhibit C-1).

Except as described above, we do not refund any initial franchise fees, except that we will refund your initial franchise fee if we do not accept you as a franchisee. You must pay us any franchise fees in a lump sum. We have the right to vary, waive (in whole or in part), reduce, negotiate or make an exception to our published fee structure and/or payment terms for any reason, including, without limitation, large or otherwise significant transactions. We also have the right to negotiate conversion funding or other incentives that may vary in type, amount and duration. Our exercise of these rights may have the effect of directly or indirectly decreasing the initial franchise fee. See Item 10.

If we permit you to open a Limited Purpose Office, we will charge you a one-time non-refundable fee of $2,000, and you will be required to sign a Limited Purpose Office Addendum. See Item 1.

---

[Item 7: ESTIMATED INITIAL INVESTMENT]

| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Real Estate [4] | $0 - $20,800 | Lump sum or open account | As incurred | Suppliers, Landlord |
| Leasehold Improvements [5] | $0 - $105,000 | Progress Payments | Before Opening | Contractors |
| Building Signs [6] | $700 - $20,000 | Lump sum, leased or financed | Within 60 days of signing the Franchise Agreement | Suppliers |
| Yard Signs, Frames/Posts [7] | $6,700 - $12,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Open House Signs [8] | $900 - $2,500 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Miscellaneous Rider Signs | $200 - $400 | Lump sum or | Within 30 days of signing | Suppliers |
| [9] |  | open account | the Franchise Agreement |  |
| Name Badges [10] | $400 - $500 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Miscellaneous [11] | $250 - $500 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Printed Materials [12] | $5,000 - $25,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Insurance [13] | $500 - $4,000 | Lump sum or open account | Before Opening | Rated carriers |
| Legal Expenses [14] | $0 - $4,000 | As incurred | Before Opening | Attorneys |
| Orientation – Travel Expenses and Costs [15] | $400 - $5,400 | As incurred | Within 12 months of the Opening Date of your Main Office | Airlines, restaurants, hotels, etc. |
| Computer Equipment for Electronic Data Transfer System [16] | $5,000 - $10,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Website [17] | $1,000 - $50,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Multiple Listing Services | $0 - $3,000 | As incurred | Within 30 days of signing | Suppliers or to us |
| [17] |  |  | the Franchise Agreement |  |
| Data Feed Transmission [18] | $0 - $5,000 | Lump sum or open account | As incurred | Suppliers |
| Additional Launch Expenses (Grand Opening) [19] | $3,000 - $5,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Advertising Agency, Media, Entertainment |
| Signature Elements [20] | $12,000 - $20,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Additional Funds | $15,000 - $40,000 | As incurred | As incurred | Employees, |
| (first 3 months after opening) |  |  |  | Suppliers, |
| [21] |  |  |  | Utilities, Us |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
| Total | $56,050 – $358,100 |  |  |  |

---

[Item 7: ESTIMATED INITIAL INVESTMENT]

#### **Notes to first Item 7 table above (Conversion Office):**

- [2] All payments you make to us or our Related Parties are non-refundable and are not financed, unless otherwise stated.

Payments you make to parties other than us or our Related Parties may be refundable and/or financed at the option of the other party.

We or a Related Party may offer financing to assist you in paying certain conversion or opening costs associated with your affiliation with the System, or offer financing to you for acquisition or recruitment opportunities or other business related expenses, if you are an existing franchisee.

Financed amounts will vary under the circumstances.

Any financing will be offered through our Conversion Promissory Note (as defined in Item 10).

See Item 10 for our current financing terms.

This Note applies to the table above, as well as to the table below.

- [3] These fees are negotiable by us.

We have the right to vary, negotiate or reduce the initial franchise fee.

---

[Item 7: ESTIMATED INITIAL INVESTMENT]

We have right to reduce or waive the initial franchise fee for eligible franchisees pursuant to our franchise sales incentive program.

As of the issuance date of this disclosure document, the initial franchise fee for your Main Office under this program is waived.

See Item 5.

Question 58

What is the initial franchise fee for a Corcoran Main Office (Item 5), and how does it compare to the maximum estimated initial investment for real estate for a conversion office (Item 7)?

Accepted Answer

e have the right to vary, negotiate or reduce the initial franchise fee. The initial franchise fee for your Main Office is \$25,000 and the initial franchise fee for your Branch Office is \$10,000. The one-time fee for a Limited Purpose Office is \$2,000. We have right to reduce or waive the initial franchise fee for eligible franchisees pursuant to our franchise sales incentive program. As of the issuance date of this disclosure document, the initial franchise fee for your Main Office under this program is waived. See Item 5.
- [4] If you do not own adequate office space, you must lease an office from which you can operate your Corcoran® franchise.

Question 59

What is the initial franchise fee for a Corcoran Main Office (Item 5), and how does it compare to the total estimated initial investment for a conversion office (Item 7), considering all expenditure types?

Accepted Answer

The initial franchise fee for your Main Office is $25,000 and the initial franchise fee for your Branch Office is $10,000.

We have right to reduce or waive the initial franchise fee for eligible franchisees pursuant to our franchise sales incentive program.

As of the issuance date of this disclosure document, the initial franchise fee for your Main Office under this program is waived.

See Item 5.

| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Real Estate [4] | $0 - $20,800 | Lump sum or open account | As incurred | Suppliers, Landlord |
| Leasehold Improvements [5] | $0 - $105,000 | Progress Payments | Before Opening | Contractors |
| Building Signs [6] | $700 - $20,000 | Lump sum, leased or financed | Within 60 days of signing the Franchise Agreement | Suppliers |
| Yard Signs, Frames/Posts [7] | $6,700 - $12,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Open House Signs [8] | $900 - $2,500 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Miscellaneous Rider Signs | $200 - $400 | Lump sum or |
| [9] |  | open account | the Franchise Agreement |  |
| Name Badges [10] | $400 - $500 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Miscellaneous [11] | $250 - $500 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Printed Materials [12] | $5,000 - $25,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Insurance [13] | $500 - $4,000 | Lump sum or open account | Before Opening | Rated carriers |
| Legal Expenses [14] | $0 - $4,000 | As incurred | Before Opening | Attorneys |
| Orientation – Travel Expenses and Costs [15] | $400 - $5,400 | As incurred | Within 12 months of the Opening Date of your Main Office | Airlines, restaurants, hotels, etc. |
| Computer Equipment for Electronic Data Transfer System [16] | $5,000 - $10,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Website [17] | $1,000 - $50,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Multiple Listing Services | $0 - $3,000 | As incurred | Within 30 days of signing | Suppliers or to us |
| [17] |  |  | the Franchise Agreement |  |
| Data Feed Transmission [18] | $0 - $5,000 | Lump sum or open account | As incurred | Suppliers |
| Additional Launch Expenses (Grand Opening) [19] | $3,000 - $5,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Advertising Agency, Media, Entertainment |
| Signature Elements [20] | $12,000 - $20,000 | Lump sum or open account | Within 30 days of signing the Franchise Agreement | Suppliers |
| Additional Funds | $15,000 - $40,000 | As incurred | As incurred | Employees, |
| (first 3 months after opening) |  |  |  | Suppliers, |
| [21] |  |  |  | Utilities, Us |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
| Total | $56,050 – $358,100 |  |  |  |

Question 60

What is the initial franchise fee for a Corcoran Main Office (Item 5), and what is the estimated initial investment for a conversion office (Item 7)?

Accepted Answer

e have the right to vary, negotiate or reduce the initial franchise fee. The initial franchise fee for your Main Office is \$25,000 and the initial franchise fee for your Branch Office is \$10,000. The one-time fee for a Limited Purpose Office is \$2,000. We have right to reduce or waive the initial franchise fee for eligible franchisees pursuant to our franchise sales incentive program.

Question 61

What is the initial franchise fee for a Corcoran Main Office as stated in Item 5, and how does it compare to the potential real estate costs for a conversion office listed in Item 7?

Accepted Answer

. This Note applies to the table above, as well as to the table below.
- [3] These fees are negotiable by us. We have the right to vary, negotiate or reduce the initial franchise fee. The initial franchise fee for your Main Office is \$25,000 and the initial franchise fee for your Branch Office is \$10,000. The one-time fee for a Limited Purpose Office is \$2,000. We have right to reduce or waive the initial franchise fee for eligible franchisees pursuant to our franchise sales incentive program. As of the issuance date of this disclosure document, the initial franchise fee for your Main Office under this program is waived. See Item 5.
- [4] If you do not own adequate office space, you must lease an office from which you can operate your Corcoran® franchise. The lower of end this range is applicable to franchisees who own their own office space for their Corcoran® franchise and the higher end reflects the estimated cost for the first 3 months of operation for franchisees who lease office space and includes the first 45-90 days you may be in the office space prior to the Opening Date. This range is estimated to cover occupancy costs incurred by franchisees dispersed over a broad geographical area.
- [5] In many instances a tenant may be able to negotiate a lease that provides for the landlord to bear most or all the cost of tenant improvements. However, as a tenant you may have to incur leasehold improvement costs. The length of the lease may have a bearing on tenant or leasehold improvement costs you must pay. Typical build-out costs are generally between \$35 to \$75 per square foot when significant construction a

Question 62

What does it mean that ERA Franchise Systems LLC allows certain qualified applicants to operate franchises using the ERA tools and systems and ERA service marks, including 'ERA Powered®', while maintaining their own trade name as the prominent trade name in their company identity, and how does it compare to Corcoran's franchise model?

Accepted Answer

ERA Franchise Systems LLC ("ERA"). ERA offers residential real estate brokerage franchises to be operated under the service mark "ERA®." In 2010, ERA began offering franchises to be operated under the service mark "ERA Powered®," allowing certain qualified applicants to operate franchises using the ERA tools and systems and ERA service marks, including "ERA Powered®," while maintaining their own trade name as the prominent trade name in their company identity. References to ERA® real estate brokerage offices may also mean ERA Powered® brokerage offices. ERA, directly and through its predecessor, has been offering real estate brokerage franchises since 1972. As of December 31, 2024, franchisees operated 444 ERA® Real Estate and ERA Powered® brokerage offices in the United States.

We offer franchises for real estate sales offices in the United States to owners of existing real estate brokerage businesses and in certain situations we may offer a franchise to newly formed real estate brokerages as described below in this Item 1 (the "Franchise" or the "Business") The Franchise permits you to offer residential and commercial real estate brokerage services from a specified office location (the "Main Office") and other authorized office locations (the Main Office and other authorized office locations collectively referred to as a "Corcoran Office" or "Office"), using the Corcoran® service mark and other trademarks, service marks, designs, logos and other commercial symbols we periodically designate (collectively, the "Marks"), and using a system that we have developed which includes access to brand specific systems, productivity resources, basic business development support, education, real estate referral and broker communications procedures, marketing and advertising services, products and other support funding by our brand marketing fund ("Brand Marketing Fund" or "BMF") and various other items (the "System"), all in accordance with the terms of our Real Estate Franchise Agreement ("Franchise Agreement") and the mandatory provisions of our Policies and Procedures Manual and the Brand Standards (collectively referred to as the "P&P Manual").

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 63

What does it mean for Corcoran franchisees that ERA Franchise Systems LLC allows qualified applicants to operate franchises using ERA tools and systems while maintaining their own trade name?

Accepted Answer

of business.

**3 ERA Franchise Systems LLC ("ERA").** ERA offers residential real estate brokerage franchises to be operated under the service mark "ERA®." In 2010, ERA began offering franchises to be operated under the service mark "ERA Powered®," allowing certain qualified applicants to operate franchises using the ERA tools and systems and ERA service marks, including "ERA Powered®," while maintaining their own trade name as the prominent trade name in their company identity. References to ERA® real estate brokerage offices may also mean ERA Powered® brokerage offices. ERA, directly and through its predecessor, has been offering real estate brokerage franchises since 1972. As of December 31, 2024, franchisees operated 444 ERA® Real Estate and ERA Powered® brokerage offices in the United States. ERA has never offered franchises in any other type of business or operated any other

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Question 64

How does the number of Better Homes and Gardens® Real Estate brokerage offices (368) compare to the potential market for a Corcoran franchise?

Accepted Answer

**4 Better Homes and Gardens Real Estate LLC ("BHGRE").** BHGRE offers residential real estate brokerage franchises to be operated under the service mark "Better Homes and Gardens® Real Estate." BHGRE has been offering real estate franchises since 2008. As of December 31, 2024, franchisees operated 368 Better Homes and Gardens® Real Estate brokerage offices in the United States. BHGRE has never offered franchises in any other type of business or operated any other type of business.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)

Corcoran 2025 FDD FAQ