Is the accuracy of the franchise application a condition of the Corcoran agreement?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
inued performance and acceptance of payments does not waive our rights.
- 15.7 Approval of Transfer of the Franchise; Prerequisites. Provided you are not in default under the terms of the Agreement, we will consider your application for the Transfer of the Franchise to a new Owner or franchisee ("Transferee"), if you provide us thirty (30) business days' advance written notice of any proposed Transfer of the Franchise. The Transferee must submit any documents we reasonably require to approve the Transfer of the Franchise. Our approval will be based on our consideration of various factors that include: (i) Transferee is a licensed real estate broker and arranges for adequate management of the Business to our satisfaction, (ii) Transferee's franchise application (and supporting documents), (iii) Transferee's or prospective owner's business experience, character, reputation and financial condition (including credit checks and financial statements), (iv) proposed transfer documents and/or any new entity organizational documents, (v) unless prohibite
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, the accuracy of the franchise application is a condition for the approval of a franchise transfer. Specifically, if a franchisee wants to transfer their franchise to a new owner, Corcoran will consider the 'Transferee's franchise application (and supporting documents)' as part of their approval process.
Corcoran's approval for a franchise transfer is based on several factors, including the transferee being a licensed real estate broker, having adequate business management, and meeting certain standards for business experience, character, reputation, and financial condition. The transferee's franchise application is a key document in this evaluation. Other factors include proposed transfer documents, the transferee's execution of the current franchise agreement, payment of outstanding debts and a $5,000 transfer fee, and the execution of a release of claims against Corcoran.
Failure to obtain Corcoran's approval for a transfer constitutes a material breach of the agreement, and any unauthorized transfer will be considered null and void. The original franchisee remains liable for all obligations under the agreement even after an unapproved transfer. This ensures Corcoran maintains control over who operates a franchise under its brand and that its standards are upheld.