Does Corcoran have the right to reduce the published fee structure?

According to Corcoran's 2025 Franchise Disclosure Document, Corcoran has the explicit right to modify its published fee structure. Specifically, Corcoran retains the authority to vary, waive (in whole or in part), reduce, negotiate, or make exceptions to its published fee structure and payment terms. This discretion extends to any reason Corcoran deems appropriate, including large or otherwise significant transactions. Corcoran also has the right to negotiate conversion funding or other incentives that may vary in type, amount, and duration.

This flexibility in fee structuring can be a significant benefit for prospective Corcoran franchisees. It allows Corcoran to adapt to specific circumstances, potentially reducing the initial financial burden for franchisees through waivers or reductions of the initial franchise fee. The existence of a franchise sales incentive program, under which the initial franchise fee for the Main Office may be waived, further illustrates this point. As of the issuance date of the 2025 disclosure document, the initial franchise fee for the Main Office under this program is waived.

However, it's important for potential franchisees to understand that these modifications are at Corcoran's discretion and are not guaranteed. While the FDD indicates that Corcoran has reduced, waived, or capped fees in the past and has the right to do so again in the future, these decisions are made on a case-by-case basis. Prospective franchisees should inquire about the specific conditions under which such reductions or waivers may be granted and should not rely solely on the possibility of fee reductions when making their investment decisions.

In the broader context of franchising, it is not uncommon for franchisors to retain some flexibility in fee structures to attract franchisees or to accommodate unique market conditions. However, the extent of this flexibility can vary significantly. Corcoran's explicit reservation of the right to modify fees provides a degree of adaptability that could be advantageous for both the franchisor and the franchisee, provided it is exercised transparently and equitably.