Are fees paid to Corcoran or Related Parties refundable?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
- [2] All fees paid to us or Related Parties, or to the BMF are non-refundable, except that we will refund your initial franchise fee if we do not accept you as a franchisee.
Source: Item 6 — OTHER FEES [1] [2] (FDD pages 27–34)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, fees paid to Corcoran or its related parties are generally non-refundable. However, there is one specific exception: the initial franchise fee is refundable if Corcoran does not accept the applicant as a franchisee. This means that if Corcoran reviews a potential franchisee's application and decides not to grant them a franchise, the initial fee submitted with the application will be returned.
This policy is fairly standard in the franchise industry. Franchisors typically retain fees to cover their administrative costs and time spent evaluating candidates. Corcoran's willingness to refund the initial franchise fee if the application is rejected demonstrates a degree of fairness, ensuring that applicants are not penalized if Corcoran decides they are not a good fit for the franchise system.
It is important for prospective franchisees to understand this refund policy clearly. While most fees are non-refundable, the initial franchise fee is protected in the event of application rejection. Franchisees should confirm this understanding with Corcoran and carefully review the Franchise Agreement for complete details on fee refund policies and conditions.