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D70/100FDD 2026

Corcoran — Litigation & Risk

Real Estate · FDD Items 3, 4 & 5

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Elevated Risk

10 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
10
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
70 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
New Jersey
State whose law governs disputes — relevant if you're not based there

What drove the 70/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count (-0.9% YoY) suggests system contraction and potential franchisee struggles
  2. 02MEDNo disclosed average revenue or net income data (missing Item 19) prevents ROI validation and is a major transparency red flag
  3. 03MEDMultiple active antitrust class actions (5 separate cases) directly threaten the commission-based business model and franchisee profitability
  4. 04MINORTCPA class action (Bumpus) indicates potential compliance issues with lead generation practices affecting franchisee operations
  5. 05MINORUnprotected territory creates direct competition risk and limits franchisee market exclusivity despite $62,150-$552,500 investment range
  6. 06HIGHRecent shareholder litigation tied to Compass merger suggests corporate instability and potential future restructuring affecting franchisee support
  7. 07HIGHGoing concern status is FALSE, indicating the franchisor may face financial viability questions during the franchise term

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.