In the context of the Counselor Realty Franchise Agreement, what is the relationship between COUNSELOR REALTY FRANCHISING, INC. and its affiliates?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
| | 13.8 | Responsibility | 14 | |
COUNSELOR FRANCHISE AGREEMENT
| FRANCHISE AGREEMENT dated , | (the |
|---|---|
| "Effective Date"), between COUNSELOR REALTY FRANCHISING, INC. (together with its | |
| affiliates, "COUNSELOR" or "we"), and | |
| of | |
| , | |
| , | |
| ("Franchisee" or "you"). |
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, COUNSELOR REALTY FRANCHISING, INC. (referred to as "COUNSELOR" in the agreement) includes its affiliates as part of the same entity when contracting with a franchisee. This means that the rights and obligations outlined in the franchise agreement apply not only to COUNSELOR REALTY FRANCHISING, INC. but also to its affiliated companies.
This is further clarified in Section 2.2(e) of the Franchise Agreement, which states that "We and our affiliates may conduct various business activities, including residential and commercial real estate brokerage businesses." This indicates that Counselor Realty's affiliates may also be involved in real estate brokerage, potentially operating in the same market as the franchisee.
For a prospective franchisee, this has several implications. First, the franchisee must understand that Counselor Realty's affiliates are considered part of the same entity for contractual purposes. Second, the franchisee should be aware that these affiliates may also be involved in real estate brokerage, potentially creating competition or collaborative opportunities. It is important for a potential franchisee to fully understand the scope of these affiliated businesses and how they might interact with the franchisee's operations.