Is a Corcoran franchisee required to retain a Responsible Broker?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 15: OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS]
ITEM 15. OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
You, if you are an individual and obtaining the Franchise as a sole proprietor, or your Owners, if you are an entity, must participate in the management of the Franchise. You, your Owners (as defined in Exhibit C to the Franchise Agreement), and your office manager (if the Office(s) will be operated by an office manager) will exercise your continuous best efforts to maintain, develop and promote the Franchise to its greatest potential and to enhance the Marks' reputation and goodwill. You must retain a Responsible Broker and you; your office manager(s) and your Responsible Broker must comply with all applicable laws, rules and regulations.
The Responsible Broker (or a designee) must complete the Orientation program to our satisfaction (see Section 6.1.2 of the Franchise Agreement). During the term of the Franchise Agreement, you, your Owners, officers, guarantors, and Responsible Broker cannot directly or indirectly, through ownership or otherwise, engage in any real estate brokerage business other than the Business or any Excluded Business authorized under the Franchise Agreement. Also, you will require all your management personnel, including your Responsible Broker and manager, to treat as confidential all information obtained by you regarding the System. The Responsible Broker and manager do not need to have an equity interest in the Franchise.
Each equity interest holder in the Franchise must sign a Guaranty of Payment and Performance, personally assuming and agreeing to discharge all obligations of the "Franchisee," including its payment obligations, under the Franchise Agreement. We have the right to require a spouse not party to the Franchise Agreement to sign a personal guaranty. By signing the Guaranty to the Franchise Agreement, a spouse will be jointly and severally liable for all obligations under the Franchise Agreement whether or not the spouse is involved in the operation of the Franchise. This places the personal assets of the owners and the owner's spouse at risk.See Exhibit C.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 62)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, a franchisee must retain a Responsible Broker. The Responsible Broker must have a real estate license in good standing in the state where the Corcoran office operates. The franchisee is obligated to notify Corcoran in writing if there is a change in the Responsible Broker. The Responsible Broker (or a designee) must also complete Corcoran's Orientation program to Corcoran's satisfaction.
The franchisee, their Owners, office manager, and Responsible Broker must comply with all applicable laws, rules, and regulations. During the term of the Franchise Agreement, the franchisee, their Owners, officers, guarantors, and Responsible Broker cannot directly or indirectly engage in any real estate brokerage business other than the Corcoran business or any Excluded Business authorized under the Franchise Agreement. The Responsible Broker and manager do not need to have an equity interest in the Franchise.
Corcoran defines the Responsible Broker as the franchisee's licensed real estate broker as required under state laws in which the office is located. The Orientation program is designed to introduce the franchisee, their Responsible Broker, or other staff to the Corcoran system. It is completed as part of the franchisee's multi-week transition into the brand and is offered virtually through a customized learning plan, which may include mandatory attendance in virtual Leadership Courses. If Orientation is offered in person, or if the franchisee acquires the franchise as a result of a Transfer of the Franchise, or if the Responsible Broker changes, Corcoran may charge a registration fee for failure to send one attendee to Orientation.