What is the 'ASP' referring to in the context of a Corcoran franchise?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
A prospective franchisee will satisfy the Criteria if it satisfies any one of the following for the geographic area (as we have the right to determine) wherein the prospective franchisee is located and will principally operate (the "Geographic Market"):
- (a) the average selling price ("ASP") for homes sold or purchased by the customers of the prospective franchisee in transactions brokered by the prospective franchisee in the Geographic Market during the Measurement Period (which is the most recent 12 full calendar months for which data is available immediately for a prospective franchisee) is in the top 50% of selling prices for all homes sold in the Geographic Market; or
- (b) the prospective franchisee is ranked in the top five in the Geographic Market in terms of highest ASP for homes sold or purchased during the Measurement Period in the Geographic Market; or
- (c) the prospective franchisee owns or operates a newly formed residential brokerage office, which office is or will be composed of independent sales associates substantially all of whom, immediately before the time the office would become part of the Franchise were affiliated with a licensed broker that would have satisfied the criteria in one of clauses (a) or (b) above with respect to the Measurement Period.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, "ASP" refers to the average selling price for homes sold or purchased by the customers of a prospective franchisee. This is specifically in relation to transactions brokered by the prospective franchisee within their Geographic Market during a defined Measurement Period. The Measurement Period is the most recent 12 full calendar months for which data is available immediately for a prospective franchisee.
Corcoran uses the ASP as one of the criteria to determine the eligibility of existing real estate brokerage businesses for conversion into a Corcoran franchised office. To meet the criteria, a prospective franchisee must demonstrate that their ASP is in the top 50% of selling prices for all homes sold in their Geographic Market, or that they are ranked in the top five in the Geographic Market in terms of the highest ASP for homes sold or purchased during the Measurement Period.
This metric is important for prospective franchisees because it directly impacts their ability to qualify for a Corcoran franchise. Maintaining a high ASP indicates a focus on higher-end properties, which aligns with Corcoran's brand image and market positioning. However, it also means that franchisees need to operate in markets where they can achieve these higher average selling prices to meet Corcoran's criteria.