What is included in the definition of 'Gross Revenue' for a Corcoran franchise?

According to Corcoran's 2025 Franchise Disclosure Document, 'Gross Revenue' encompasses all compensation received or receivable in connection with the business. This includes revenues and commissions, regardless of whether other individuals or entities are entitled to retain portions of those revenues or commissions. The revenue sources factored into gross revenue include new development services, transactions, and services that require a real estate or auctioneer's license, especially when the Corcoran Marks or System are used. This calculation is made before deducting any fees, costs, or expenses the franchisee incurs, with the exception of certain referral fees paid to various sources. Any amounts deposited into the business's bank accounts are presumed to be Gross Revenue unless proven otherwise.

This definition is important because the royalty fee that Corcoran franchisees pay is based on a percentage of Gross Revenue. The royalty rate varies depending on the amount of Gross Revenue, starting at 6% on the first $5,000,000 and decreasing as revenue increases.

For a prospective Corcoran franchisee, understanding this definition is crucial for accurately calculating royalty fees and managing their business finances. Franchisees need to be aware of what constitutes Gross Revenue to ensure they are reporting and paying the correct amounts to Corcoran. The provision that all deposited amounts are considered Gross Revenue unless proven otherwise places the onus on the franchisee to maintain accurate records and documentation.