What is considered a curable default for a Corcoran franchise?

According to the 2025 Corcoran Franchise Disclosure Document, a curable default is defined within the context of a promissory note. Specifically, if a party receives a notice of default under an agreement and has an opportunity to cure the default as per the agreement's terms, failure to do so within the provided period constitutes a default. This definition applies to defaults related to agreements or notes between the maker and the holder, including franchise agreements.

This means that if a Corcoran franchisee receives a notice of default for a breach of the franchise agreement (or related agreements) that allows for a cure period, they must rectify the issue within the specified timeframe to avoid further action. The consequences of failing to cure can include acceleration of unpaid principal and accrued interest, making them immediately due and payable.

It is important to note that the FDD also outlines specific non-curable defaults that allow Corcoran to terminate the agreement immediately without notice or an opportunity to cure. These include issues such as suspension or revocation of a Responsible Broker's license (under certain conditions), conduct that impairs the brand's image, bankruptcy proceedings, repeated defaults, material misrepresentations, or operating a competing business. Therefore, understanding which defaults are curable and which are not is crucial for a Corcoran franchisee to maintain compliance and avoid termination of the franchise agreement.