What constitutes a 'continuous' breach of the Counselor Realty franchise agreement?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) We may terminate for good cause if you perform any intentional, material, repeated or continuous breach of this Agreement. We must provide you with 60 days' written notice of termination, specifying the cause for termination. Except as provided below, you shall have 30 days from delivery of notice to cure the breach (except in the case of non-payment of sums due, in which case you shall have seven days to cure the breach). If you fail to do so this Agreement shall terminate on expiration of the 60-day notice period.
- (b) This Agreement shall terminate immediately upon delivery of notice to you if: (i) you misrepresent or omit material information on your application; or (ii) you fail to locate a suitable site or open the Office for business within the time required under section 1.2 of this Agreement; or (iii) you become insolvent or bankrupt; or (iv) you transfer or attempt to transfer this Agreement without our consent; or (v) you abandon this Agreement, the Office or the Business; or (vi) you (or a principal officer, director, or partner of Franchisee) are convicted of, or plead guilty or no contest to, any charge of violation of any law relating to the Office (including any Additional Office or Extension Office) and
Business, or of any felony; or (vii) you perform any act, or fail to take an action, the result of which impairs or threatens to impair the goodwill associated with the Marks; or (viii) you are in continuous or repeated breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, a 'continuous' breach of the franchise agreement is grounds for termination. Specifically, Counselor Realty can terminate the agreement immediately if the franchisee is in continuous or repeated breach of the agreement.
Counselor Realty must provide a 60-day written notice specifying the cause for termination, allowing the franchisee 30 days to cure the breach, except in cases of non-payment where only seven days are given to cure. However, in the case of a continuous or repeated breach, the termination is effective immediately upon delivery of notice.
This means that if a Counselor Realty franchisee repeatedly violates the franchise agreement, Counselor Realty does not have to provide an opportunity to cure the breach and can terminate the agreement immediately. This could have significant implications for a franchisee, potentially leading to the loss of their franchise with little recourse.