Under what conditions can the Corcoran franchise agreement be terminated?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
- E.
Termination and Non-renewal: Section 16 of this Agreement relates to renewal and termination of the franchise.
California Business and Professions Codes Sections 20000 through 20043 provide rights to you concerning termination, transfer, or non-renewal of the franchise.
- A. Termination and Non-renewal: Section 16 of this Agreement relates to renewal and termination of the franchise. With respect to franchises governed by Minnesota law, Franchisor will comply with Minnesota Statutes, Section 80C.14, Subdivisions 3, 4, and 5, which require, except in certain specified cases, that Franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the Agreement.
Your rights upon termination and non-renewal of a franchise agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
- G. Termination by Franchisee.
The franchisee may terminate the franchise agreement under any grounds permitted under state law.
- H. Certain Buy-Back Provisions.
Provisions in franchise agreements or related agreements that permit the franchisor to repurchase the franchisee's business for any reason during the term of the franchise
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to the 2025 Corcoran Franchise Disclosure Document, the conditions for termination of the franchise agreement are governed by state laws, specifically mentioning the rights afforded to franchisees under California, Illinois, Minnesota and Washington law. For instance, California Business and Professions Codes Sections 20000 through 20043 provide specific rights concerning termination. Similarly, Minnesota Statutes, Section 80C.14, Subdivisions 3, 4, and 5, mandate that franchisees receive 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal, except in certain specified cases. The Illinois Franchise Disclosure Act also outlines franchisee rights upon termination and non-renewal in sections 19 and 20.
In Washington, the franchisee may terminate the franchise agreement under any grounds permitted under state law. Additionally, provisions that allow Corcoran to repurchase the franchisee's business without consent are unlawful unless the termination is for good cause, according to RCW 19.100.180(2)(j). These state laws collectively ensure that Corcoran franchisees have certain protections and rights regarding the termination of their agreements.
These stipulations are important for prospective franchisees as they highlight the legal protections available to them depending on their location. It is essential for franchisees to understand the specific laws of their state to ensure they are aware of their rights and the conditions under which their franchise agreement can be terminated. This also underscores the importance of seeking legal counsel to fully understand the implications of the franchise agreement and any state-specific addenda.