When is the Minimum Annual Royalty Fee payable to Corcoran?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.1.4 Minimum Annual Royalty Fee. We reserve the right to charge a Minimum Annual Royalty Fee for new Branch Offices or Start-Up Main Offices opened in certain markets, which fee will vary based upon the market and specific circumstances and will be set forth in an addendum to this Agreement. Such fee will be payable by January 10th of the following calendar year, but only if your Royalty Fee payments for the calendar year are less than the Minimum Annual Royalty Fee.
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, the Minimum Annual Royalty Fee is payable by January 10th of the following calendar year. However, this payment is only required if the franchisee's Royalty Fee payments for the calendar year are less than the Minimum Annual Royalty Fee.
This fee applies to new Branch Offices or Start-Up Main Offices opened in certain markets, with the specific fee amount varying based on the market and circumstances. The exact fee will be detailed in an addendum to the Franchise Agreement.
For a prospective Corcoran franchisee, it's crucial to understand the specific Minimum Annual Royalty Fee applicable to their location and business type, as outlined in the addendum. Franchisees should also track their Royalty Fee payments throughout the year to determine if a payment will be due by January 10th.