What is the limitation on transfer fees that Corcoran can collect?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
- F. Transfer Fees.
Transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, the transfer fees that Corcoran collects from franchisees are limited. Specifically, Corcoran can only collect transfer fees to the extent that the fees reflect the company's reasonable estimated or actual costs associated with processing the transfer.
This limitation protects franchisees from being charged excessive or arbitrary transfer fees. It ensures that the fees are directly tied to the costs Corcoran incurs during the transfer process. This is a fairly standard practice in franchising, as many franchise systems aim to recover legitimate expenses without profiting excessively from franchise transfers.
For a prospective Corcoran franchisee, this means that if they decide to sell their franchise in the future, the transfer fees they will be charged must be justifiable and transparent. They have the right to question any transfer fees that seem unreasonable or disproportionate to the actual costs incurred by Corcoran. Franchisees should request a detailed breakdown of these costs to ensure compliance with this provision.