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

According to Corcoran's 2025 Franchise Disclosure Document, Corcoran retains the right to modify its published fee structure. Specifically, Corcoran has the authority to vary, waive (in whole or in part), reduce, negotiate, or make exceptions to its published fee structure and payment terms for any reason. This includes the initial franchise fee, as well as other fees. Corcoran also has the right to negotiate conversion funding or other incentives that may vary in type, amount, and duration.

This discretion allows Corcoran to adapt to specific circumstances, such as large or significant transactions, or to incentivize prospective franchisees through a franchise sales incentive program. As of the issuance date of the 2025 disclosure document, the initial franchise fee for the Main Office under the program is waived. This flexibility can be a significant benefit for franchisees, as it opens the door for potentially lower initial costs or more favorable payment terms.

However, it also introduces an element of uncertainty. While Corcoran may offer incentives or waivers, it is not obligated to do so, and the availability of such benefits may vary. Prospective franchisees should carefully review the terms of the Franchise Agreement and discuss any potential fee adjustments or incentives with Corcoran during the negotiation process. Understanding the conditions under which Corcoran may exercise its right to modify fees is crucial for making an informed investment decision.

It is also important to note that while Corcoran has the right to adjust fees, the document also states that all fees paid to Corcoran or Related Parties, or to the BMF are non-refundable, except that Corcoran will refund the initial franchise fee if it does not accept you as a franchisee. This non-refundability underscores the importance of thorough due diligence and careful consideration before entering into a franchise agreement with Corcoran.