What is the 'Measurement Period' referring to in the context of a Corcoran franchise?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
A prospective franchisee will satisfy the Criteria if it satisfies any one of the following for the geographic area (as we have the right to determine) wherein the prospective franchisee is located and will principally operate (the "Geographic Market"):
- (a) the average selling price ("ASP") for homes sold or purchased by the customers of the prospective franchisee in transactions brokered by the prospective franchisee in the Geographic Market during the Measurement Period (which is the most recent 12 full calendar months for which data is available immediately for a prospective franchisee) is in the top 50% of selling prices for all homes sold in the Geographic Market; or
- (b) the prospective franchisee is ranked in the top five in the Geographic Market in terms of highest ASP for homes sold or purchased during the Measurement Period in the Geographic Market; or
- (c) the prospective franchisee owns or operates a newly formed residential brokerage office, which office is or will be composed of independent sales associates substantially all of whom, immediately before the time the office would become part of the Franchise were affiliated with a licensed broker that would have satisfied the criteria in one of clauses (a) or (b) above with respect to the Measurement Period.
In addition, in certain instances, we have the right to grant a Franchise to a prospective franchisee that does not satisfy any of the Criteria listed above.
Once you satisfy the Criteria for your Main Office, you will be deemed to have satisfied the Criteria for the term of the Franchise Agreement.
We have the right to determine whether you have satisfied the Criteria. To help us make this determination, we also have the right to require you to provide us with the information we prescribe. We have the right to determine whether a proposed Office location is acceptable for operation of the Franchise, and if requested, you must allow us to physically inspect any Office location you propose.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–17)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, the 'Measurement Period' is used to determine if a prospective franchisee meets the eligibility criteria for owning a Corcoran franchise. Specifically, it refers to the most recent 12 full calendar months for which data is available immediately for a prospective franchisee. This period is used to assess the average selling price (ASP) of homes sold or purchased by the prospective franchisee's customers.
To satisfy the eligibility criteria, a prospective franchisee must meet at least one of three conditions related to their performance within their Geographic Market. The first condition is that the ASP for homes sold or purchased by the franchisee's customers during the Measurement Period must be in the top 50% of selling prices for all homes sold in the Geographic Market. The second condition is that the prospective franchisee must be ranked in the top five in the Geographic Market in terms of the highest ASP for homes sold or purchased during the Measurement Period. The third condition applies to newly formed residential brokerage offices composed of independent sales associates who were previously affiliated with a broker that would have satisfied either of the first two conditions during the Measurement Period.
Corcoran retains the right to determine whether a prospective franchisee has satisfied these criteria and may request information to aid in this determination. Importantly, once a franchisee satisfies the criteria for their Main Office, they are considered to have satisfied the criteria for the entire term of the Franchise Agreement. This provides a level of assurance and consistency for the franchisee once they are approved.