Which Disclosure Document item covers post-termination obligations for Counselor Realty franchisees?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
NT.
| Obligation | Section in Franchise Agreement | Disclosure Document Item |
|---|---|---|
| a. Site selection and | Section 1.2 | Items 1, 7, 11, 12 |
| acquisition/lease | ||
| b. |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 17–21)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, Item 17 addresses the franchisee's obligations after the franchise agreement is terminated. The table provided in Item 11 cross-references various obligations with specific sections in the Franchise Agreement and corresponding items in the Disclosure Document.
Specifically, post-termination obligations are linked to Section 7.2 and Article 12 of the Franchise Agreement. This means that the franchisee's duties and responsibilities following the end of the franchise relationship are detailed in those sections of the Franchise Agreement, and further explained in Item 17 of the FDD.
Prospective Counselor Realty franchisees should carefully review Item 17 and the referenced sections of the Franchise Agreement to fully understand their post-termination obligations. These obligations often include restrictions on operating a similar business, maintaining confidentiality, and returning proprietary materials to Counselor Realty. Understanding these obligations is crucial for planning an exit strategy or in the event of a dispute leading to termination.