Is the initial franchise fee refundable for a Corcoran franchise?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
1.6.3 YOU WILL PAY THE INITIAL FRANCHISE FEE WHEN YOU SIGN THIS AGREEMENT OR ANY ADDENDUM FOR A FUTURE OFFICE, AS APPLICABLE.THE INITIAL FRANCHISE FEE IS NOT REFUNDABLE; IT IS FULLY EARNED ON THE DATE WE SIGN THIS AGREEMENT OR AN ADDENDUM, AS APPLICABLE.
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, the initial franchise fee is not refundable. The initial franchise fee for the first Corcoran office is $25,000. For additional branch offices, the initial franchise fee is $10,000 per office. The initial franchise fee for any Limited Purpose Office is $2,000.
This means that once the Franchise Agreement or any addendum is signed, the initial franchise fee is considered fully earned by Corcoran and will not be returned to the franchisee under any circumstances. This is a standard practice in franchising, as the fee compensates the franchisor for the initial costs and efforts in granting the franchise.
Prospective franchisees should carefully consider this non-refundable aspect of the initial franchise fee. It is crucial to conduct thorough due diligence and ensure that they are fully committed to the franchise before signing the agreement and paying the fee. Understanding this policy is essential for managing financial expectations and mitigating potential risks associated with the franchise investment.