What warranties does the franchisee make to Corcoran when entering into the agreement?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
23.0 ADDITIONAL REPRESENTATIONS, WARRANTIES AND COVENANTS: You make the following additional warranties and representations that are an inducement on which we are relying to enter into this Agreement:
23.1 The information in the franchise application is accurate and complete.
Any consents or authorizations in the application are incorporated into this Agreement and are effective for the Term.
- 23.2 You are not obtaining this Business for speculative purposes and have no present intention to sell or transfer or attempt to sell or transfer the Business in whole or in part.
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to the 2025 Corcoran Franchise Disclosure Document, as an inducement for Corcoran to enter into the franchise agreement, the franchisee makes certain warranties and representations. Specifically, the franchisee warrants that the information provided in the franchise application is accurate and complete, and any consents or authorizations within the application are incorporated into the agreement and remain effective for the term of the agreement.
Additionally, the franchisee warrants that they are not acquiring the Corcoran business for speculative purposes. This means they have no current intention to sell or transfer the business, either in whole or in part. This representation is crucial for Corcoran as it seeks franchisees who are committed to building and operating the business for the long term, rather than simply flipping it for a quick profit.
These warranties and representations are significant because Corcoran relies on them when deciding to grant a franchise. If these warranties prove to be false or misleading, it could have legal and financial repercussions for the franchisee, potentially leading to termination of the franchise agreement and other penalties. Therefore, it is essential for prospective franchisees to ensure the accuracy and completeness of all information provided to Corcoran during the application process.