What are the consequences of violating the confidentiality agreement for a Counselor Realty franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) During and after the term of this Agreement, you shall not disclose to a third party or use, except to operate the Business during the term of this Agreement, any confidential or proprietary information, or trade secret, that we own or disclose to you. You must require your Business manager (if any) and agents to sign a corresponding confidentiality agreement. You must return the entire Franchise Policy Guidelines to us promptly upon termination or expiration of this Agreement or any transfer.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, franchisees are bound by confidentiality agreements both during and after the term of the franchise agreement. During the franchise term, franchisees must not disclose or use any confidential or proprietary information or trade secrets, except to operate the business. This obligation extends to requiring any business manager or agents to sign corresponding confidentiality agreements.
After the termination or expiration of the Franchise Agreement, the franchisee is still obligated to maintain confidentiality. Specifically, the franchisee must return the entire Franchise Policy Guidelines.
Failure to comply with these confidentiality provisions could result in legal action from Counselor Realty, including potential termination of the franchise agreement and financial penalties. It is important for prospective franchisees to fully understand the scope of confidential information and the restrictions on its use and disclosure, as outlined in the Franchise Agreement and Franchise Policy Guidelines.