What is the transfer fee for a Corcoran franchise?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
inued performance and acceptance of payments does not waive our rights.
- 15.7 Approval of Transfer of the Franchise; Prerequisites. Provided you are not in default under the terms of the Agreement, we will consider your application for the Transfer of the Franchise to a new Owner or franchisee ("Transferee"), if you provide us thirty (30) business days' advance written notice of any proposed Transfer of the Franchise. The Transferee must submit any documents we reasonably require to approve the Transfer of the Franchise. Our approval will be based on our consideration of various factors that include: (i) Transferee is a licensed real estate broker and arranges for adequate management of the Business to our satisfaction, (ii) Transferee's franchise application (and supporting documents), (iii) Transferee's or prospective owner's business experience, character, reputation and financial condition (including credit checks and financial statements), (iv) proposed transfer documents and/or any new entity organizational documents, (v) unless prohibite
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, a franchisee who wishes to transfer their franchise must pay a transfer fee of $5,000. This fee is one of several prerequisites that Corcoran requires before considering an application for transfer to a new owner or franchisee, referred to as the "Transferee."
In addition to the transfer fee, Corcoran's approval depends on several factors related to the Transferee. These include ensuring the Transferee is a licensed real estate broker and can adequately manage the business. Corcoran also reviews the Transferee's franchise application, business experience, character, reputation, and financial condition, including credit checks and financial statements. The franchisor also assesses the proposed transfer documents and any new entity organizational documents.
Furthermore, unless prohibited by law, the Transferee must execute the then-current form of the franchise agreement, and new owners must execute the current form of guaranty. The franchisee must also ensure payment or assumption of any outstanding debt owed to Corcoran. Both the franchisee and any departing owners must execute a release of all claims against Corcoran and its related parties. Finally, an audit of the franchisee's operations is conducted, and the franchisee must purchase tail coverage on their errors and omissions insurance policy, naming Corcoran as an additional insured. These comprehensive requirements ensure that any transfer meets Corcoran's standards and protects its interests.