Is the initial franchise fee for a Corcoran franchise refundable?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
coran® franchise, we will countersign the Franchise Agreement.
The initial franchise fee is non-refundable and is fully earned by us upon our countersignature. As further described in Item 1, we have a franchise sales incentive program under which we may waive or reduce the initial franchise fee and provide other business benefits for prospective franchisees that meet the eligibility requirements. As of the issuance date of this disclosure document, the initial franchise fee for the Main Office under the program is waived.
Source: Item 5 — INITIAL FEES (FDD pages 25–26)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, the initial franchise fee is generally non-refundable. The standard initial franchise fee is $25,000 for a Main Office and $10,000 for each Branch Office. These fees are fully earned by Corcoran upon countersignature of the Franchise Agreement or any addendum for a future office. This means that once the agreement is signed by Corcoran, the franchisee is not entitled to a refund of the initial fee.
However, there is an exception: Corcoran will refund the initial franchise fee if they do not accept the applicant as a franchisee. Additionally, Corcoran has a franchise sales incentive program that may waive or reduce the initial franchise fee for eligible franchisees. As of the issuance date of the 2025 disclosure document, the initial franchise fee for the Main Office is waived under this program.
It's important for prospective franchisees to understand the conditions under which the initial fee is non-refundable. They should also inquire about the eligibility requirements for the franchise sales incentive program, which could result in a waiver of the initial fee for the Main Office. Furthermore, franchisees should be aware that the fee structure and payment terms are subject to change at Corcoran's discretion.