What must a Corcoran franchisee NOT do regarding the operation of their franchise?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
You must operate your Franchise only from the Office(s) identified in the Franchise Agreement.
You must not operate your Franchise at any site other than the Office(s) identified in your Franchise Agreement without our prior written approval. If you want to relocate, close, or consolidate any Office(s), you must request our approval in writing (and submit other relevant information that we request to evaluate your proposal) at least 30 days before the proposed change. If we do not respond to your request within this period, the proposed change will be deemed disapproved. We may impose conditions on a location change, including:
- [1] The new Office location must satisfy our then current office appearance standards and must offer you the prospect of enhancing your ability to provide quality real estate services;
- [2] The relocation of your Office must not expose us or any of our Related Parties to potential liability (as we have the right to determine in our reasonable business judgment);
- [3] The relocation must not be likely to have a material adverse effect on our business, the business of our Related Parties or of other franchisees (as we have the right to determine in our reasonable business judgment);
- [4] You must be in compliance with the Franchise Agreement and all other agreements with us and/or our Related Parties; and
- [5] You must sign documentation we require to memorialize the approved change in location.
You do not have any options, rights of first refusal or similar rights to acquire additional Franchises. You do not receive the right to acquire additional Offices unless we sign a Location Addendum (or Limited Purpose Office Addendum) to the Franchise Agreement with you for each additional Office. You do not have any standing to object to a new franchise Office based upon proximity of the Limited Purpose Office to the proposed new franchise Office. You should not sign a new lease or incur any other expenses or liabilities for any new Office(s) until we have approved the proposed location. See Sections 5.4 and 5.5 of the Franchise Agreement regarding the opening of additional Offices. We require no minimum sales quotas in order for you to continue to operate your Main Office.
Source: Item 12 — TERRITORY (FDD pages 57–59)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, a franchisee must operate their franchise only from the office locations specified in the Franchise Agreement. A franchisee cannot operate their Corcoran franchise at any site other than the approved office without prior written approval from Corcoran.
If a Corcoran franchisee wishes to relocate, close, or consolidate any office, they must request approval in writing at least 30 days before the proposed change. If Corcoran does not respond within this 30-day period, the request is considered disapproved. Corcoran may also impose conditions on a location change. These conditions include ensuring the new office meets Corcoran's current appearance standards, does not expose Corcoran or its related parties to potential liability, and does not negatively impact Corcoran's business, its related parties, or other franchisees. Additionally, the franchisee must be in compliance with all agreements and sign any required documentation to formalize the location change.
Furthermore, the Corcoran franchisee does not have any options, rights of first refusal, or similar rights to acquire additional franchises. They do not automatically receive the right to acquire additional offices unless Corcoran signs a Location Addendum (or Limited Purpose Office Addendum) to the Franchise Agreement for each additional office. A franchisee also cannot object to a new franchise office based on its proximity to a Limited Purpose Office. It is important that a franchisee does not sign a new lease or incur any expenses for new offices until Corcoran has approved the proposed location. Corcoran does not require minimum sales quotas for the franchisee to continue operating their main office.