Must a Counselor Realty Business operate in full compliance with all applicable laws and regulations?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
Counselor requires you to confine your Business to the operation of a full service residential and/or commercial real estate brokerage business. You may not conduct any other business or activity at the Office (or any Additional Office or Extension Office), and you may not offer or sell any product or service from the Business except those authorized by Counselor. Your Business may be identified only by the Marks designated by Counselor. Your Business must operate in full compliance with all applicable local, state and federal laws and regulations. The Franchise Agreement also contains certain covenants restricting your freedom to engage in certain competitive activities, and requires you to indemnify Counselor and its affiliates for all claims and losses related to the operation of your Business. See Items 9(p) and 17, and Exhibit B.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 25)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, a franchisee's business operation must be in full compliance with all applicable local, state, and federal laws and regulations. This requirement is a standard practice in franchising, ensuring that all franchisees operate legally and ethically.
This obligation extends to various aspects of the business, including but not limited to, maintaining a bona fide real estate broker's license in good standing under the laws of the state where the business is located. If the franchisee is a partnership, corporation, or other entity, they must be legally authorized to do business in the state. Franchisees must also keep in force all necessary licenses and permits required by public authorities.
Counselor Realty also requires that franchisees and their staff, including licensed real estate agents, conform to local, state, and federal laws and regulations. The franchisee is responsible for hiring, discharging, setting wages, and determining the terms of employment for their employees and agents. Furthermore, franchisees must comply with changes that Counselor Realty may make to the Franchise Policy Guidelines, System, and standards, even if additional investment or expenditures are required.
Compliance with these laws and regulations is critical for maintaining the integrity of the Counselor Realty brand and protecting both the franchisee and the franchisor from legal liabilities. Prospective franchisees should carefully review all applicable laws and regulations and ensure they have the resources and expertise to operate their business in full compliance.