What was the accumulated deficit for Corcoran at the end of 2024?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
; and (y) to the extent the laws of the State of California govern the relationship of the parties hereto, Franchisee and its owners, partners, members and/or Shareholders are fully familiar with the provisions of Section 1542 of the Civil Code of the State of California and each expressly waives any and all rights under Section 1542 of the Civil Code of the State of California which provides as follows:
"A General Release does not extend to claims which the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."
THE PERSON SIGNING THIS ADDENDUM ON BEHALF OF THE FRANCHISEE REPRESENTS AND WARRANTS THAT HE OR SHE IS A DULY APPOINTED OFFICER OR OTHERWISE HAS BEEN AUTHORIZED TO BIND THE FRANCHISEE TO THE TERMS OF THIS ADDENDUM.
| outstanding at December 31, 2024 and December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . . | ||
|---|---|---|
| Anywhere common stock: $0.01 par value; 400,000,000 shares authorized, 111,261,825 | ||
| shares issued and outstanding at December 31, 2024 and 110,488,093 shares issued and | 1 1 | |
| outstanding at December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | ||
| Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,827 4,813 | |
| Accumulated deficit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, the accumulated deficit at the end of 2024 was $(3,219). This figure represents the total losses Corcoran has incurred over its lifetime, which have not been offset by profits. It is a cumulative amount, reflecting the ongoing financial performance of the company.
For a prospective franchisee, a significant accumulated deficit can be a point of concern. It indicates that the company has historically struggled to be profitable. While not necessarily a deal-breaker, it warrants careful consideration of the company's strategies for improving profitability and its overall financial stability. A franchisee should investigate the reasons behind the deficit and the plans Corcoran has in place to address it.
It's important to note that an accumulated deficit doesn't automatically mean the company is in immediate financial danger. Many factors can contribute to this deficit, such as significant investments in growth, economic downturns, or other temporary setbacks. However, it does highlight the importance of conducting thorough due diligence and assessing the franchisor's long-term financial viability before investing in a Corcoran franchise. Understanding the context behind the accumulated deficit is crucial for making an informed decision.
In addition to the accumulated deficit, the FDD also provides figures for the accumulated deficit at the end of 2023, which was $(3,091). Comparing these figures can provide insight into whether the deficit is increasing or decreasing, which can be a useful indicator of the company's recent financial performance and trajectory.