What are 'Development Offices' defined as in the Corcoran P&P Manual?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
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We also may permit a qualifying existing franchisee to open a limited purpose office. Limited purpose offices are designed to accommodate special market conditions and related situations, and as of the issuance date of this disclosure document include the following: Development Office, Team Office and Administrative Offices, as described in more detail in the P&P Manual ("Limited Purpose Offices"). The duration and general terms of each Limited Purpose Office will vary based on its particular function and other circumstances. We have the right to waive or vary the criteria described below in our reasonable business judgment.
To obtain a Limited Purpose Office, you must sign the applicable then-current "Limited Purpose Office Addendum" to your Franchise Agreement. While we reserve the right, at any time, to modify the terms of the Limited Purpose Office Addenda, they typically: (i) will be for a one-year term (although we have the right to extend this period for one or more additional one-year terms, or in the case of a Team Office, we may reduce the duration of the term to under one year); (ii) require the payment of a non-refundable initial franchise fee of $2,000; (iii) contain a 30-day mutual termination right; (iv) prohibit or limit your ability to transfer your rights under the Limited Purpose Office Addendum, without our approval; (v) require all Gross Revenue from the respective Limited Purpose Office to be reported through your Main Office and to be aggregated with the Main Office for all purposes under the Franchise Agreement; and (vi) will not hinder or prevent us from placing a new franchise location in close proximity to the Limited Purpose Office. Some Limited Purpose Office types prohibit signage and will not appear as locations on our website.
We reserve the right, at any time, to modify, discontinue or add to the Limited Purpose Offices. While Limited Purpose Offices are included as franchised outlets in Item 20, except for Administrative and Team Offices, as of December 31, 2024, there were less than 3% of all franchised outlets were Limited Purpose
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, a Development Office is a type of 'Limited Purpose Office,' and the specific definition of Development Offices is found within the P&P Manual. Corcoran may permit qualifying existing franchisees to open these limited purpose offices to accommodate special market conditions. Other types of limited purpose offices include Team Offices and Administrative Offices.
To open a Development Office, a franchisee must sign a 'Limited Purpose Office Addendum' to their Franchise Agreement. These addenda typically have a one-year term (which Corcoran can extend), require a $2,000 non-refundable initial franchise fee, and include a 30-day mutual termination right. The addendum also restricts the franchisee's ability to transfer rights without Corcoran's approval. All gross revenue from the Development Office must be reported through the franchisee's Main Office and aggregated with the Main Office for accounting purposes. Corcoran retains the right to place new franchise locations in close proximity to the Development Office.
Some Limited Purpose Office types, including Development Offices, may prohibit signage and may not be listed as locations on Corcoran's website. Corcoran reserves the right to modify, discontinue, or add to the types of Limited Purpose Offices offered. As of December 31, 2024, less than 3% of all franchised outlets were Limited Purpose Offices, excluding Administrative and Team Offices. Prospective franchisees should consult the P&P Manual and the Limited Purpose Office Addendum for a complete understanding of the requirements, restrictions, and terms associated with Development Offices.