What rights does Corcoran have to change the System?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
14.1 Agreement to Accept Modifications. We have the right to change or add to the Marks or the System, including the adoption of new or modified trade names, trademarks, trade dress, service marks, copyrighted materials, new products or services, new equipment, new business methods or new techniques from time to time, without your consent. We have the right to modify, suspend or eliminate any new or existing portion of the System or the Marks. Changes related to the Marks or System will be communicated to you and reflected in the P&P Manual. You will accept, use and display changes in the System and will make such expenditures as may be required to implement the changes.
- 14.2 Improvements by You. If you conceive or develop any improvements or additions to the System, new trade names, trademarks, service marks or other commercial symbols related to the System or any advertising or promotion ideas related to the System (collectively, "Improvements"), you will fully disclose the Improvements to us and obtain our written approval prior to use. Any Improvements we approve will be deemed licensed to us on a royalty-free, paid-up, perpetual worldwide license, and may be used by us, our Related Parties, and our franchisees without any liability to you or obligation to pay you royalties or other compensation. We have the right to apply for and own copyrights, trade names, trademarks and service marks relating to Improvements. Improvements will be our property and trade secret. We will authorize you to use Improvements authorized for use by other franchisees.
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to the 2025 Corcoran Franchise Disclosure Document, Corcoran has the right to modify the System, including trademarks, service marks, and trade dress, without the franchisee's consent. This includes adopting new or modified trade names, copyrighted materials, new products or services, new equipment, new business methods, or new techniques. Corcoran can also modify, suspend, or eliminate any new or existing part of the System or Marks.
This means that Corcoran franchisees must adapt to changes that Corcoran implements. These changes will be communicated to the franchisee and reflected in the P&P Manual. The franchisee is required to accept and implement these changes, and must also make any necessary expenditures to comply with them.
Furthermore, if a franchisee develops any improvements or additions to the System, these improvements must be disclosed to Corcoran and receive written approval before use. Any approved improvements are licensed to Corcoran on a royalty-free, paid-up, perpetual, worldwide license, allowing Corcoran and its related parties and franchisees to use them without any obligation to compensate the franchisee. Corcoran also has the right to apply for and own copyrights, trade names, trademarks, and service marks relating to these improvements, which will be considered Corcoran's property and trade secrets.