Who benefits from the use of Counselor Realty's Marks by a franchisee?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
4. TRADEMARK STANDARDS.
- 4.1 Name. You may not use the Marks as part of your corporate or business name without our consent. Your use of the Marks inures to our benefit. We own all goodwill now or hereafter associated with each of the Marks. You will not contest our ownership or registration of the Marks.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the franchisor, Counselor Realty, benefits from the franchisee's use of its trademarks, referred to as the "Marks." Specifically, the FDD states that the franchisee's use of the Marks inures to the benefit of Counselor Realty, and that Counselor Realty owns all goodwill associated with each of the Marks. The franchisee is prohibited from contesting Counselor Realty's ownership or registration of the Marks.
This arrangement is typical in franchising, where the franchisor licenses its brand and trademarks to franchisees. The franchisee's successful operation under the brand enhances the brand's reputation and value, ultimately benefiting the franchisor. In this case, Counselor Realty retains ownership of the brand and benefits from the goodwill generated by its franchisees' use of the Marks.
For a prospective Counselor Realty franchisee, this means that while they have the right to use the Counselor Realty Marks to operate their business, they do not gain any ownership in the Marks themselves. The franchisee's use of the Marks strengthens the Counselor Realty brand, which benefits the franchisor. This is a standard condition in franchise agreements, ensuring the franchisor maintains control over its brand and benefits from its overall success.