What other conditions to transfer are outlined in the Counselor Realty franchise agreement, and on what page are they found?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
entity, by contract or otherwise.
- 9.2 Other Conditions to Transfer. You must apply for our consent by submitting written notice of the pending transfer, with a complete application, signed by you and by the proposed transferee, and payment of the transfer fee, at least 60 days before the proposed transfer date. The transfer fee is $2,000 and applies to all transfers (excluding transfers described in, and in accordance with, the second to last sentence of Section 9.1). We may specifically withhold consent if: (i) you do not pay all amounts you owe to Counselor or its affiliates or to your suppliers; (ii) you (or the transferee) do not complete the repair, maintenance or upgrade of the Business' facility, fixtures, equipment, and signage to then-current System standards; or (iii) all shareholders or owners of the transferee do not execute the guaranty of the new Agreement.
- 9.3 Franchisee Death or Disability. Your death, disability or incapacity (or of a principal officer, director or partner of Franchisee) is also a "transfer." Your executor, heir or legal representative (or the corporation or partnership, if an entity) must apply within 60 days of the death or incapacity for our consent to transfer this Agreement and satisfy the other conditions above.
- 9.4 Transfer by Franchi
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, there are several conditions that must be met to transfer a franchise. To start, the franchisee must apply for consent by submitting written notice of the pending transfer, along with a complete application signed by both the current franchisee and the proposed transferee. This application, along with the transfer fee, must be submitted at least 60 days before the proposed transfer date. The transfer fee is $2,000 and applies to all transfers, with some exceptions as noted in Section 9.1. These details are found in Item 22 of the FDD, which covers contracts related to the franchise agreement.
Counselor Realty may withhold consent if the franchisee has not paid all amounts owed to Counselor Realty, its affiliates, or its suppliers. Consent may also be withheld if the franchisee or transferee has not completed the necessary repairs, maintenance, or upgrades to the business's facility, fixtures, equipment, and signage to meet the then-current System standards. Additionally, all shareholders or owners of the transferee must execute the guaranty of the new agreement for the transfer to be approved.
In the event of the death, disability, or incapacity of the franchisee (or a principal officer, director, or partner), it is also considered a "transfer." In such cases, the executor, heir, or legal representative must apply for consent to transfer the agreement within 60 days of the event and satisfy all other conditions mentioned above. Counselor Realty, however, retains the right to transfer its interest in the agreement at its own discretion.