What is the franchisee acknowledging about the importance of standards to Corcoran?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges and agrees that: (x) if the Guarantor(s) do not maintain operational control of the entire Business, Franchisee and the trust, such an event will constitute a transfer as described in Section 15.4 of this Agreement; and (y) Franchisee must comply with all applicable provisions of this Section 15.
Franchisee further acknowledges and agrees that if the Guarantor(s) desires to turn over operational control of the Franchisee, the trust or the Franchise to one or more trust beneficiaries, such beneficiaries must satisfy all conditions of approval described in Section 15.7 of this Agreement.
Nothing contained herein is or should be deemed to constitute our consent or acquiescence to any transfer as described in Section 15.4 of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to the 2025 Corcoran Franchise Disclosure Document, the franchisee acknowledges that if the Guarantor(s) do not maintain operational control of the entire Business, Franchisee and the trust, such an event will constitute a transfer as described in Section 15.4 of the Agreement. The franchisee also agrees to comply with all applicable provisions of Section 15.
Furthermore, the franchisee acknowledges that if the Guarantor(s) desires to turn over operational control of the Franchisee, the trust or the Franchise to one or more trust beneficiaries, such beneficiaries must satisfy all conditions of approval described in Section 15.7 of the Agreement. This highlights the importance Corcoran places on maintaining consistent operational control and adherence to the franchise agreement terms.
These acknowledgements are crucial for prospective franchisees as they emphasize the need for strict adherence to Corcoran's operational standards and transfer protocols. Failure to comply with these standards can result in a breach of the franchise agreement, potentially leading to termination or other penalties. It is important for franchisees to fully understand and comply with these requirements to maintain a successful and compliant franchise operation.