In what form must franchise fees be paid to Corcoran?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay us any franchise fees in a lump sum. We have the right to vary, waive (in whole or in part), reduce, negotiate or make an exception to our published fee structure and/or payment terms for any reason, including, without limitation, large or otherwise significant transactions. We also have the right to negotiate conversion funding or other incentives that may vary in type, amount and duration. Our exercise of these rights may have the effect of directly or indirectly decreasing the initial franchise fee. See Item 10.
Source: Item 5 — INITIAL FEES (FDD pages 25–26)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, franchise fees must be paid in a lump sum. Specifically, this applies to the initial franchise fee. The initial franchise fee is $25,000 for a Main Office and $10,000 for each Branch Office. However, the initial franchise fee for the Main Office may be waived under a franchise sales incentive program.
Corcoran does not refund initial franchise fees unless the applicant is not accepted as a franchisee. However, Corcoran retains the right to modify or waive fees and payment terms. This includes the right to negotiate conversion funding or other incentives, which could decrease the initial franchise fee.
Prospective franchisees should note that the initial franchise fee is paid when signing the Franchise Agreement or any addendum for a future office. The fee is considered fully earned by Corcoran on the date they sign the agreement or addendum. This means that once the agreement is signed, the franchisee is obligated to pay the fee in full, as a lump sum, and it is non-refundable under most circumstances.