How are disputes resolved with Counselor Realty?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
10. RESOLUTION OF DISPUTES.
- 10.1 Arbitration. Except as provided below, any dispute arising under or in relation to this Agreement shall be resolved by binding arbitration by the National Center for Dispute Settlement, under its rules for expedited commercial arbitration, in Minneapolis, Minnesota. Each claim or controversy will be arbitrated by Franchisee on an individual basis, and will not be consolidated in any arbitration action with the claim of any other franchisee. The award of the arbitrators is final and binding on all parties. The arbitrators may issue appropriate orders as well as award monetary (but not exemplary or punitive) damages. The prevailing party will be entitled to recover its costs including its reasonable attorneys' fees. We may sue to collect money owed to us, to protect or enforce our rights in the Marks, or to compel inspections or audits.
- 10.2 Injunctive Relief. Your breach of this Agreement could cause irreparable damage to Counselor or to other franchisees. Therefore, upon a breach or threatened breach of any of the terms of this Agreement, we are entitled to an immediate injunction restraining such breach and/or a decree of specific performance, pending arbitration or adjudication, without bond, or having to show or prove any actual damage, and without regard to the availability of an adequate remedy at law.
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, disputes are primarily resolved through binding arbitration. Specifically, any dispute arising under or in relation to the Franchise Agreement will be settled through binding arbitration managed by the National Center for Dispute Settlement, following its rules for expedited commercial arbitration, and the location for arbitration is Minneapolis, Minnesota. Each claim must be arbitrated individually, without consolidation with other franchisees' claims. The arbitrator's decision is final and binding.
The arbitrator is empowered to issue appropriate orders and award monetary damages, but cannot award exemplary or punitive damages. The prevailing party in the arbitration is entitled to recover their costs, including reasonable attorney's fees. However, Counselor Realty retains the right to sue franchisees in court to collect money owed, protect their rights in the Marks, or compel inspections or audits.
Furthermore, the FDD states that a breach of the Franchise Agreement by the franchisee could cause irreparable damage to Counselor Realty or its other franchisees. In such cases, Counselor Realty is entitled to an immediate injunction to stop the breach or a decree of specific performance, pending arbitration or adjudication. This can be obtained without providing a bond, showing actual damage, or demonstrating the inadequacy of legal remedies. This dispute resolution framework is typical in franchising, aiming for quicker and more cost-effective resolution compared to traditional litigation, while still allowing the franchisor to protect its brand and system standards through court action when necessary.