According to Corcoran, what constitutes a 'Transfer of the Franchise'?

According to Corcoran's 2025 Franchise Disclosure Document, a "Transfer of the Franchise" is comprehensively defined. It includes any transaction or series of transactions that result in the sale or transfer of substantially all of the Business's assets. It also includes situations where the majority owner(s) before the transaction(s) hold less than 51% equity interest in you or the Business's assets. Furthermore, another entity becoming a franchisee or the owner(s) no longer controlling or managing the Business also constitutes a transfer.

Corcoran specifies that the Transfer of the Franchise may occur due to various circumstances such as divorce, death, insolvency, dissolution, declaration of or transfer in trust, or a foreclosure on the Business assets. If any owners are entities, a Transfer of the Franchise will be deemed to occur if such owner entity experiences any of these events or transactions.

For a prospective Corcoran franchisee, this definition is crucial because any of these scenarios would trigger the transfer provisions in the franchise agreement, potentially requiring Corcoran's approval and adherence to specific conditions. Understanding these triggers is essential for managing ownership and control of the franchise throughout its term. Corcoran also requires a $5,000 transfer fee.