Is attempting to subfranchise a cause for termination of a Corcoran franchise?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
16.2.3.4 Your attempt to subfranchise, license or grant to any other person or entity the right to use the Marks or the System licensed to you under this Agreement;
16.2.4 Noncurable Defaults; No Notice Required. We may terminate this Agreement immediately without prior notice or an opportunity to cure, if any of the following defaults occurs:
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, attempting to subfranchise, license, or grant the rights to use Corcoran's marks or system to another person or entity without approval is grounds for termination of the franchise agreement. Specifically, Corcoran may terminate the agreement immediately without prior notice or an opportunity to cure this default.
This means that a Corcoran franchisee is strictly prohibited from allowing another party to operate under the Corcoran brand or system without express permission from Corcoran. This restriction is in place to protect the integrity of the Corcoran brand and ensure consistent quality and standards across all franchise locations.
Prospective franchisees should understand that this is a non-curable default, meaning that Corcoran does not have to provide any warning or opportunity to correct the behavior before terminating the agreement. This underscores the importance of adhering to the terms of the franchise agreement and seeking approval for any actions that could be construed as subfranchising or licensing the Corcoran system.