Under what condition is a Transfer of a Corcoran franchise prohibited?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.6 Prohibited Assignments or Transfers of the Franchise. You may not complete a Transfer of the Franchise without our prior written approval, which will be subject to our Reasonable Business Judgment.
Failure to obtain our approval will be a material breach of this Agreement.
Any attempted Transfer of the Franchise not expressly permitted by this Agreement or approved by us will be null and void, and you will remain liable for all obligations under this Agreement.
If you complete a Transfer of the Franchise in violation of this Section, our continued performance and acceptance of payments does not waive our rights.
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, a transfer of the franchise is prohibited without prior written approval from Corcoran. This approval is subject to Corcoran's Reasonable Business Judgment. Attempting to transfer the franchise without express permission or approval renders the transfer null and void. In such a case, the franchisee remains liable for all obligations under the Franchise Agreement.
Even if Corcoran continues to perform and accept payments after an unapproved transfer, this does not waive Corcoran's rights regarding the violation. This means that Corcoran can still take action despite continuing the business relationship.
For a prospective Corcoran franchisee, this highlights the importance of adhering to the transfer guidelines outlined in the Franchise Agreement. Failure to obtain proper approval can result in a breach of contract and continued liability for the franchise's obligations, even after the attempted transfer.