What must a prospective Corcoran franchisee satisfy to meet the Criteria?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
Usually, the Franchise is granted to owners of existing real estate brokerage businesses for conversion to a franchised office. The existing real estate brokerage businesses, however, must meet certain eligibility criteria which are listed below (the "Criteria").
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 franchise is typically granted to owners of existing real estate brokerage businesses for conversion to a franchised office. However, these businesses must meet specific eligibility criteria, referred to as "the Criteria." A prospective Corcoran franchisee will satisfy the Criteria if they meet any one of the following conditions within their Geographic Market, as determined by Corcoran.
First, the average selling price (ASP) for homes sold or purchased by the prospective franchisee's customers in transactions brokered by them in the Geographic Market during the Measurement Period (the most recent 12 full calendar months for which data is available) must be in the top 50% of selling prices for all homes sold in that Geographic Market. Second, the prospective franchisee can 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. Third, the prospective franchisee can own or operate a newly formed residential brokerage office composed of independent sales associates, substantially all of whom were previously affiliated with a licensed broker that would have satisfied either of the first two criteria during the Measurement Period.
Corcoran also retains the right to grant a franchise to a prospective franchisee that does not meet any of the above criteria in certain instances. Once a franchisee satisfies the Criteria for their Main Office, they are considered to have met the Criteria for the entire term of the Franchise Agreement. Corcoran has the right to determine whether a prospective franchisee has satisfied the Criteria and may require the franchisee to provide information to assist in this determination. Corcoran also has the right to approve the proposed Office location and may conduct physical inspections of the location.