Does Corcoran grant franchisees an exclusive territory?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
we have the right to add, change or discontinue any ancillary service at any time.
ITEM 12. TERRITORY
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we own or control. You must operate your Franchise only from the Office(s) identified in the Franchise Agreement. You must promote your services within the market served by your Office(s). Except as described below, you, and your affiliated agents, may solicit clients from anywhere that your real estate license permits, and in accordance with state and local real estate rules and regulations. Additionally, subject to your real estate license limitations, you may solicit clients using alternative channels of distribution, including the internet, catalog sales, telemarketing or other direct marketing sales.
At any time, we and our Related Parties have the right, without compensation to you, to own, operate, franchise or license others to operate real estate brokerage businesses, including without limitation Corcoran® offices, and other businesses anywhere within or outside the market area where your Office(s) is located, including locations in immediate proximity to your Office(s). The Real Estate Affiliates grant similar real estate brokerage franchises to operate under the Coldwell Banker®, Coldwell Banker Commercial®, CENTURY 21®, Better Homes and Gardens® Real Estate, Sotheby's International Realty® and ERA® service marks. We do not resolve conflicts between our franchisees, or between our franchisees and franchisees of the Real Estate Affiliates regarding territory, customers and franchisor support. We do, however, work with our franchisees and the Real Estate Affiliates and their franchisees to collaboratively resolve conflicts regarding territory, customers and franchisor support.
Anywhere Advisors currently operates real estate brokerage businesses under Coldwell Banker®, Coldwell Banker Commercial® and Sotheby's International Realty® service marks. NRT NY currently operates real estate brokerage businesses under Corcoran® and Corcoran Sunshine® service marks. There is no restriction under the Franchise Agreement that prevents us, the Real Estate Affiliates, Anywhere Advisors, NRT NY or any other present or future Related Party from owning, operating, franchising or licensing others to operate, real estate brokerages or other businesses under the Corcoran®, Sotheby's International Realty®, Coldwell Banker®, Coldwell Banker Commercial®, CENTURY 21®, Better Homes and Gardens® Real Estate and ERA® service marks, or any other service marks, anywhere within or outside your market area. Except for real
estate license limitations, there are no restrictions on us or our Related Parties, or our or our Related Parties' franchisees, that would prevent us or our Related Parties, or our or our Related Parties' franchisees from accepting clients or listings within the area in which you operate.
Source: Item 12 — TERRITORY (FDD pages 57–59)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. Corcoran states that franchisees may face competition from other franchisees, outlets that Corcoran owns, or from other channels of distribution or competitive brands that Corcoran owns or controls. Franchisees must operate their franchise only from the office or offices identified in the Franchise Agreement and promote their services within the market served by their offices.
Corcoran and its related parties retain the right to own, operate, franchise, or license others to operate real estate brokerage businesses, including Corcoran offices, anywhere within or outside the franchisee's market area, even in close proximity to the franchisee's office. The Real Estate Affiliates grant similar real estate brokerage franchises to operate under other service marks such as Coldwell Banker, Coldwell Banker Commercial, CENTURY 21, Better Homes and Gardens Real Estate, Sotheby's International Realty and ERA. Corcoran does not resolve conflicts between its franchisees, or between its franchisees and franchisees of the Real Estate Affiliates regarding territory, customers and franchisor support, but they do work to collaboratively resolve conflicts.
While Corcoran generally does not grant exclusive territorial rights, it does reserve the right to grant franchisees limited protected areas in which no new franchises will be granted for a period of time determined by Corcoran if local market conditions or other economic factors merit such a decision. Any grant of limited protected areas must be in writing and will have a specified term. Corcoran has the right to terminate such limited areas of protection if a franchisee fails to maintain a level of annual Gross Revenue or other conditions that Corcoran determines are appropriate for the maintenance of the protected area granted or otherwise is in default of the Franchise Agreement.
This lack of an exclusive territory is a significant factor for prospective franchisees to consider. The franchisee will need to be prepared to compete with other Corcoran franchisees, company-owned outlets, and potentially other brands under the same parent company. The possibility of a limited protected area exists, but it is not guaranteed and can be terminated if certain performance metrics are not met. This competitive environment underscores the importance of strong marketing, customer service, and local market knowledge for a Corcoran franchise to succeed.