What initial obligations does Corcoran have to the franchisee after the Effective Date?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
Related Parties.
- 5.5 Limited Purpose Offices. We may establish and modify requirements for "Limited Purpose Offices" (e.g., development office or team office). Conditions and restrictions for opening, operating and closing Limited Purpose Offices, including signage, services, and fees, will be described in the P&P Manual or in a Limited Purpose Office Addendum.
6.0. SERVICES AND OBLIGATIONS TO FRANCHISEE:
- 6.1 Our Initial Obligations. After the Effective Date, we or a Related Party will provide the following services:
- 6.1.1 Methods and Techniques. We or a Related Party will provide you with our real estate brokerage selling, promotional and merchandising methods and techniques and will maintain a staff to give you assistance and service.
- 6.1.2 Orientation. The "Orientation" is our program to introduce the System to the Responsible Broker and other staff. When the Orientation is given, it will consist of our then-current training program. The Orientation will be held at such times and places as we designate. It may also be conducted virtually. You will be responsible for all travel costs and living expenses incurred in connection with the attendance of your personnel at the Orientation.
- 6.1.2.1 If you are signing this Agreement to acquire a new franchise directly from us, you will register for Orientation within twelve (12) months of the Opening Date. You, your Responsible Broker (or designee) must attend Orientation within twelve (12) months of the Opening Date. We will not charge a registration fee for one attendee at Orientation. Your failure to send the Responsible Broker (or designee) to attend Orientation in accordance with this Agreement will require you to pay our then-current registration fee in addition to your other expenses to attend.
- 6.1.2.2 If you acquire your franchise as a result of a Transfer of the Franchise from another Franchisee, attendance at the Orientation is required by the Responsible Broker or Designee, at your expense. We may charge our then-current registration fee in connection with their attendance at the Orientation.
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, after the Effective Date of the franchise agreement, Corcoran or a Related Party has specific initial obligations to the franchisee. These obligations include providing the franchisee with Corcoran's real estate brokerage selling, promotional, and merchandising methods and techniques. Corcoran will also maintain a staff to provide assistance and service to the franchisee.
Corcoran will provide an "Orientation" program to introduce the Corcoran system to the Responsible Broker and other staff. This orientation will consist of Corcoran's then-current training program and will be held at designated times and places, potentially conducted virtually. If the franchisee is acquiring a new franchise directly from Corcoran, they must register for Orientation within twelve months of the Opening Date, and the Responsible Broker (or designee) must attend Orientation within the same timeframe. Corcoran will not charge a registration fee for one attendee at Orientation. However, the franchisee is responsible for all travel costs and living expenses incurred in connection with their personnel's attendance at the Orientation.
If the franchise is acquired through a transfer from another franchisee, attendance at the Orientation is required by the Responsible Broker or Designee, at the franchisee's expense, and Corcoran may charge its then-current registration fee. If the franchisee changes the Responsible Broker for their office, the new Responsible Broker must attend the next scheduled Orientation within twelve months of becoming the Responsible Broker, with the franchisee covering all associated costs, including the registration fee. These initial obligations are designed to equip the franchisee with the necessary tools, knowledge, and support to operate a Corcoran franchise effectively.