Does Corcoran have the right to vary the published fee structure?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to vary, waive (in whole or in part), reduce, negotiate or make an exception to our published fee structure and/or payment terms for any reason, including, without limitation, large or otherwise significant transactions. We also have the right to negotiate conversion funding or other incentives that may vary in type, amount and duration. Our exercise of these rights may have the effect of directly or indirectly decreasing the initial franchise fee. See Item 10.
Source: Item 5 — INITIAL FEES (FDD pages 25–26)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, Corcoran retains the right to modify its published fee structure. Specifically, Corcoran can vary, waive (in whole or in part), reduce, negotiate, or make exceptions to its fee structure and payment terms for any reason. This includes the ability to negotiate conversion funding or other incentives that may differ in type, amount, and duration. Corcoran's decisions in this regard may directly or indirectly decrease the initial franchise fee.
This flexibility extends beyond the initial franchise fee. The document also states that Corcoran has the right to negotiate increases or decreases in, vary or waive, cap, or alter the amount, form, or calculation of any of the fees listed in Item 6. Corcoran has reduced, waived, or capped fees in the past and may do so again in the future.
For a prospective franchisee, this means that the fees listed in the FDD are not necessarily fixed. There is potential for negotiation, especially for large or significant transactions. However, it also introduces an element of uncertainty, as Corcoran can change the fees at its discretion. It is important for potential franchisees to discuss fee structures and potential variations with Corcoran during their due diligence process to fully understand the potential costs and incentives.