What is the condition for the Counselor Realty franchise agreement to become effective?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.7 Review. This Agreement is not effective until fully executed by both parties and we issue notice of approval to you. You acknowledge that we have recommended and that you have had an opportunity to review this Agreement, our Franchise Disclosure Document and other relevant information before entering into this Agreement with legal counsel or a professional business advisor of your choosing.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, the franchise agreement is not effective until it is fully executed by both the franchisee and Counselor Realty, and Counselor Realty issues a notice of approval to the franchisee. This means that even after signing the agreement, the franchise is not officially granted until Counselor Realty formally approves it.
This condition protects Counselor Realty by allowing them to conduct their own due diligence and ensure that the franchisee meets their standards before granting the franchise. It also provides a safeguard for Counselor Realty, ensuring they have the final say in who becomes a franchisee.
For a prospective franchisee, this means that signing the agreement is not a guarantee of becoming a Counselor Realty franchisee. It is crucial to understand that the agreement is contingent upon Counselor Realty's approval. Therefore, franchisees should ensure they meet all requirements and expectations set by Counselor Realty to increase their chances of approval. It would be prudent to maintain open communication with Counselor Realty during this period to address any potential concerns and ensure a smooth approval process.