What is a Corcoran franchisee solely responsible for protecting their Business from?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.6 Technology Protection. You are solely responsible for protecting your Business from disruptions, internet access failures, internet connection failures, and attacks by hackers and other unauthorized intruders.
For any technology you use in connection with the Business, you will reasonably ensure such technology has adequate data security controls, including but not limited to: (i) authentication mechanisms designed so that they cannot be bypassed to gain unauthorized access to your system; (ii) encryption; (iii) password protection measures, such as protecting the form in which they are stored and strong and complex character classes and password length; and (iv) adhere to applicable data privacy and information security laws and any other security measure reasonable for our industry.
You and your owners waive any and all claims you may have against us arising from or related to the direct or indirect result of such disruptions, failures, or attacks.
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to the 2025 Corcoran Franchise Disclosure Document, a franchisee is solely responsible for protecting their business from disruptions, internet access failures, internet connection failures, and attacks by hackers and other unauthorized intruders. This responsibility extends to any technology used in connection with the business, ensuring it has adequate data security controls. These controls include authentication mechanisms, encryption, password protection measures, and adherence to applicable data privacy and information security laws.
In practical terms, this means a Corcoran franchisee must invest in and maintain robust cybersecurity measures to safeguard their business operations and data. This includes implementing strong passwords, encrypting sensitive data, and regularly updating security protocols to prevent unauthorized access. Franchisees also need to stay informed about and comply with all relevant data privacy and information security laws to avoid potential legal issues and maintain customer trust.
The FDD also states that the franchisee and their owners waive any claims against Corcoran arising from disruptions, failures, or attacks. This highlights the importance of taking proactive measures to protect the business, as the franchisee assumes full responsibility for any losses or damages resulting from security breaches or system failures. This is a significant risk factor to consider before investing in a Corcoran franchise.
While Corcoran provides support and resources to assist franchisees in operating their businesses, this support is primarily aimed at protecting the brand and goodwill associated with the Corcoran system. It does not relieve the franchisee of their responsibility to secure their own business operations. Prospective franchisees should carefully evaluate their ability to implement and maintain effective cybersecurity measures before committing to a Corcoran franchise.