Is attempting to subfranchise the Corcoran franchise a cause for termination?

According to the 2025 Corcoran Franchise Disclosure Document, attempting to subfranchise, license, or grant to another person or entity the right to use the marks or system licensed to the franchisee under the agreement is grounds for termination of the franchise agreement. Specifically, Corcoran may terminate the agreement if a franchisee attempts to subfranchise, license, or grant to any other person or entity the right to use the Marks or the System licensed to them under the Franchise Agreement.

This clause protects Corcoran by ensuring that the brand's standards and practices are uniformly maintained across all franchise locations. Subfranchising could introduce inconsistencies or quality control issues that could negatively impact the brand's reputation.

It is important to note that this is a direct cause for termination, meaning Corcoran does not need to provide prior notice or an opportunity to cure the default. A prospective franchisee should understand this strict prohibition and adhere to it to avoid immediate termination of their franchise agreement.