What constitutes a 'repeated' breach of the Counselor Realty franchise agreement?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 'repeated' breach of the franchise agreement is grounds for immediate termination. Specifically, Counselor Realty can terminate the agreement immediately if the franchisee is in 'continuous or repeated breach' of the agreement.
This means that if a franchisee violates the terms of the agreement on multiple occasions, even if those individual breaches might not be severe enough to warrant termination on their own, Counselor Realty can terminate the agreement. The FDD does not define what constitutes 'repeated', so it is up to Counselor Realty to determine the number of breaches that would qualify as 'repeated'.
This clause gives Counselor Realty significant power to terminate the agreement if they perceive a pattern of non-compliance from the franchisee. A prospective franchisee should seek clarification from Counselor Realty regarding what specific actions or failures would be considered a 'repeated breach' and how many violations would trigger immediate termination. Understanding Counselor Realty's interpretation of this clause is crucial for assessing the risks associated with the franchise agreement.