Does the definition of 'transfer' by a Counselor Realty franchisee include the transfer of business assets?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
MENT**
| Provision | Section(s) in Franchise or Other Agreement | Summary |
|---|---|---|
| j. Assignment of contract by franchisor | Section 9.4 | Counselor may transfer its interest in Franchise Agreement by notice to you |
| k. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 25–29)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the definition of 'transfer' by a franchisee does include the transfer of business assets. Specifically, a transfer includes the transfer of your interest in the Franchise Agreement, the Office, Business or Business assets, or an interest in your business entity or your owners.
This means that if a Counselor Realty franchisee wants to sell their business, which includes the business assets, it is considered a transfer under the terms of the Franchise Agreement. As such, the franchisee must adhere to the transfer conditions outlined in the agreement.
Counselor Realty has the right to consent to all transfers, with some exceptions for minority interest transfers in the business entity. Counselor Realty will grant consent if the transferee is qualified and the conditions specified in the Franchise Agreement are satisfied. This provision ensures that Counselor Realty maintains control over who becomes a franchisee and that the brand's standards are upheld. Additionally, Counselor Realty retains the right of first refusal to match any offer for the franchisee's business.