What is the definition of 'Related Parties' in the Corcoran Franchise Agreement?

According to Corcoran's 2025 Franchise Disclosure Document, the term "Related Parties" is specifically defined within the context of the Franchise Agreement. It refers to any "Person" (defined as an individual, partnership, trust, corporation, limited liability company, association, or any other incorporated or unincorporated organization or entity) who directly or indirectly owns or controls another Person, is owned or controlled by another Person, or is under common control with that Person.

The definition further clarifies that "control" means possessing the executive power to direct or cause the direction of the management and policies of a Person. This control can be exerted through various means, including voting power, ownership, contractual agreements, or other arrangements.

This definition is important for prospective franchisees as it clarifies the scope of entities that may have influence or be influenced by Corcoran. Understanding the relationships between Corcoran and its related parties can help franchisees assess potential conflicts of interest, understand the flow of resources and support, and evaluate the competitive landscape. It is important to note that Related Parties may operate real estate brokerage offices, potentially creating competition for Corcoran franchisees.