What is the 'Effective Date' referring to in the Counselor Realty franchise agreement?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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, the 'Effective Date' refers to the date the franchise agreement is dated and becomes active between Counselor Realty Franchising, Inc. and the franchisee. This date marks the commencement of the franchise agreement's initial term.
The initial term of the Counselor Realty franchise agreement begins on the Effective Date and lasts for five years. The Effective Date is a critical reference point for calculating the term of the agreement and deadlines related to renewal or termination.
Furthermore, the Counselor Realty franchise agreement is not considered effective until it is fully executed by both the franchisee and Counselor Realty, and Counselor Realty issues a notice of approval to the franchisee. This means that even after signing, the agreement is not active until Counselor Realty formally approves it. This approval process ensures that Counselor Realty has the final say in accepting a franchisee into their system.