What are some examples of cyber-crime claims that Corcoran could face?

According to Corcoran's 2025 Franchise Disclosure Document, the company may face cyber-crime claims, including those related to the diversion of homesale transaction closing funds. This means that Corcoran franchisees could potentially be involved in legal disputes or claims arising from cyber-attacks or fraudulent activities that target the financial aspects of real estate transactions.

Given this risk, Corcoran requires franchisees to protect their businesses from disruptions, internet access failures, internet connection failures, and attacks by hackers and other unauthorized intruders. Franchisees are responsible for ensuring that any technology used in connection with their Corcoran business has adequate data security controls. These controls include authentication mechanisms, encryption, password protection measures, and adherence to applicable data privacy and information security laws.

This allocation of responsibility means that Corcoran franchisees bear the direct responsibility for securing their own technology and data infrastructure. They also waive any claims against Corcoran arising from disruptions, failures, or attacks. Therefore, prospective franchisees should carefully evaluate the costs and complexities associated with maintaining robust cybersecurity measures to protect their business operations and customer data.