For the Corcoran franchise, what were the securitization obligations in the most recent period?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
This Security Agreement ("Security Agreement") is made as of , between , ("Debtor"), and Corcoran Group LLC ("Secured Party").
For good and valuable consideration, the receipt and sufficiency of which are acknowledged, Debtor grants to Secured Party a security interest in all accounts receivable and payment intangibles; cash proceeds; contract rights; leases; furniture; furnishings; equipment; fixtures; inventory; commissions; real estate listings, listing agreements and related rights which are located at, utilized by or related to the real estate brokerage business conducted by Debtor and including the proceeds therefrom and any and all amendments or replacements thereto and any rebate/award program (or similar incentive programs) to which Debtor and/or any Co-Debtors may be entitled pursuant to any franchise agreement entered into with Secured Party, together with all such rights and property hereafter acquired by Debtor and Co-Debtors; and all general intangibles (collectively, the "Collateral") as well as all parts, replacements, substitutions, profits, products and cash and non-cash proceeds of the foregoing Collateral (including insurance and condemnation proceeds payable by reason of condemnation of or loss or damage thereto). [Add following only for Security Agreements filed in New Jersey - The Collateral described herein falls within the scope of the Uniform Commercial Code enacted in New Jersey, including N.J.S.A. 12A:9-102 and N.J.S.A. 12A:9-109.] The foregoing Collateral is granted to Secured Party as security for (i) the prompt payment of any promissory notes executed by Debtor in favor of Secured Party, and any renewals, compromises, extensions, modifications, accelerations or other changes in the time for performance or other terms (the "Notes"), and (ii) performance under any franchise agreements between Debtor and Secured Party, as the same may be amended (the "Franchise Agreements"), and (iii) all other agreements between Debtor and Secured Party.
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to the 2025 FDD, Corcoran utilizes security agreements to protect its interests. These agreements, as of the date of the FDD, are made between the Debtor (the franchisee) and Corcoran Group LLC (the Secured Party). The franchisee grants Corcoran a security interest in various assets related to the real estate brokerage business. These assets include accounts receivable, payment intangibles, cash proceeds, contract rights, leases, furniture, fixtures, inventory, commissions, real estate listings, and general intangibles, along with any proceeds from these items.
This collateral serves as security for several obligations. These obligations include the prompt payment of any promissory notes executed by the franchisee in favor of Corcoran, performance under the franchise agreements between the franchisee and Corcoran, and all other agreements between the franchisee and Corcoran. This means that if a franchisee fails to meet their financial or contractual obligations, Corcoran has the right to claim the specified assets as compensation.
For a prospective Corcoran franchisee, this security agreement represents a significant legal and financial obligation. It means that a substantial portion of their business assets are pledged to Corcoran as collateral. Franchisees should carefully review the terms of the security agreement and understand the potential consequences of failing to meet their obligations under the franchise agreement or any related promissory notes. It is also important to note that the security agreement may be subject to state-specific regulations, such as those under the Uniform Commercial Code in New Jersey, which could further impact the franchisee's rights and obligations.