Does the Corcoran franchise agreement define the term 'Person'?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
"Related Parties," means, with respect to a particular "Person" (defined in the Franchise Agreement as "an individual, a partnership, a trust, a corporation, a limited liability company, an association and any other incorporated or unincorporated organization or entity"), a Person who, directly or indirectly, owns or controls that Person is owned or controlled by a Person, or is under common control with that Person. Control, in this context, means the possession of executive power to direct or to cause the direction of the management and policies of a Person, whether through voting power, ownership, by contract or otherwise.
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, the term "Person" is defined within the franchise agreement. Specifically, it states that for the purposes of defining "Related Parties," the term "Person" is defined as "an individual, a partnership, a trust, a corporation, a limited liability company, an association and any other incorporated or unincorporated organization or entity".
This definition is important because it clarifies who is considered a "Related Party" of a franchisee. The definition encompasses a wide range of entities, ensuring that any individual or organization with a significant relationship to the franchisee is included. This is a common practice in franchise agreements to ensure that all parties with influence or control are properly identified and their relationships disclosed.
For a prospective Corcoran franchisee, understanding this definition is crucial for identifying any potential conflicts of interest or relationships that could impact their franchise operations. It also helps in understanding the scope of the franchisor's control and influence over the franchisee's business. Franchisees should carefully review this definition and consider how it applies to their specific circumstances and business structure.