Can Corcoran require franchisees to deal only with approved suppliers?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
ise Agreement.
ITEM 8. RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
We require ongoing maintenance of quality and uniformity throughout the Corcoran® System by identifying certain standards and specifications governing the use of the Marks in your day-to-day business, including on business cards, stationery, signage, and in related advertising and marketing. Accordingly, you must purchase building signs, yard signs, stationery, business cards and other Corcoran trademark-bearing items used in your real estate business that meet the mandatory standards and specifications as described in P&P Manual, which includes the Brand Standards. We have the right to change the P&P Manual and Brand Standards periodically. Any modifications to the P&P Manual and Brand Standards will be made to the copy located on the extranet site and we will provide notice of changes to you. The modifications are immediately effective and at your own expense, you must adopt on a timely basis (but no later than 90 days after notice) any such modifications.
We consider the mandatory specifications, standards and other requirements contained in the P&P Manual and Brand Standards to be of critical importance to the success of the System and may require that you deal only with suppliers that have been approved by us.
Except for the Signature Elements described in Item 7, we do not have specific standards or specifications for the furniture, fixtures and equipment that you use in your Office(s), except that we have minimum computer requirements you must comply with in order to access our reporting system, as further described in Item 11. However, you may purchase computer equipment that meets these requirements from any source. Any furniture, fixtures and equipment you use in your Office(s) must be in good condition and create an overall professional image for your Office(s).
We or Anywhere Services Group maintains a list of "Approved Suppliers" that provide trademark-bearing items to be used by our franchisees. Many of these Approved Suppliers participate in Anywhere Services Group's preferred vendor program (the "Strategic Partnership Program") which provides a variety of thirdparty products and services to our franchisees and franchisees of the Real Estate Affiliates for optional purchase. We and/or Anywhere Services Group negotiate purchase arrangements for certain products and
services with Approved Suppliers, including price terms, for the benefit of franchisees. Trademark-bearing products, including signage and stationery, may only be purchased from an Approved Supplier unless you receive our prior written permission to use another supplier. Among the criteria we consider in permitting you to use another supplier is whether the supplier is able to produce the product or service in compliance with our mandatory standards and specifications and other requirements. You must submit product samples and specifications to us for inspection, testing and approval. Our analysis of an alternative supplier in these circumstances usually takes up to 30 days. We do not charge testing and/or inspection fees.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 40–43)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, Corcoran may require franchisees to deal exclusively with suppliers approved by them. This requirement is tied to maintaining quality and uniformity within the Corcoran system, particularly concerning items bearing Corcoran trademarks, such as business cards, stationery, and signage. These items must meet mandatory standards and specifications detailed in Corcoran's P&P Manual, which includes Brand Standards. Corcoran retains the right to modify these standards periodically, with changes communicated to franchisees and effective within 90 days.
For trademark-bearing products like signage and stationery, franchisees must purchase from an Approved Supplier unless they obtain prior written permission from Corcoran to use another supplier. Corcoran will assess alternative suppliers based on their ability to comply with mandatory standards and specifications, a process that typically takes up to 30 days. Corcoran may limit the number of Approved Suppliers to secure volume discounts or ensure consistent quality and adequate supplies.
Corcoran, or Anywhere Services Group, can also revoke a supplier's approved status if they no longer meet Corcoran's criteria, breach their agreement, or offer products/services that are not competitively priced or of sufficient quality. Franchisees will be notified within 90 days of such a revocation. While franchisees are required to use approved suppliers for certain items, Corcoran does not assume liability for the performance of any supplier, whether approved or not.
Notably, in 2024, required purchases or leases, including those subject to mandatory standards, by franchisees of Real Estate Affiliates accounted for $1,586,600, or 0.03% of Anywhere Group's total revenue of approximately $5.7 billion. This indicates that while the approved supplier requirement exists, the financial impact on the overall revenue of Anywhere Group is relatively small.