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In the event of trademark infringement, can Counselor Realty decide not to take any action?

Counselor_Realty Franchise · 2025 FDD

Answer from 2025 FDD Document

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Counselor reserves sole discretion to determine what steps, if any, are to be taken in any instance of unauthorized use or infringement of any of its Marks and has complete control of any litigation or settlement in connection with any claim of an infringement, unfair competition or unauthorized use with respect to the Marks. Counselor is not obligated to protect your use of the licensed Marks or to protect you against claims of infringement or unfair competition.

14. PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION

Counselor does not grant you the right to use any item covered by a patent or copyright, but does permit you to use proprietary information in applicable components of the Franchise Policy Guidelines.

Source: Item 13 — TRADEMARKS (FDD pages 23–24)

What This Means (2025 FDD)

According to Counselor Realty's 2025 Franchise Disclosure Document, Counselor Realty retains the sole discretion to decide what actions, if any, it will take in response to unauthorized use or infringement of its trademarks. This means that Counselor Realty is not obligated to act on every instance of trademark infringement, and the company has complete control over any related litigation or settlements.

For a prospective franchisee, this implies that Counselor Realty might not always pursue legal action against those who infringe upon the brand's trademarks. While Counselor Realty owns several registered trademarks, including "COUNSELOR" registered on September 5, 2000, "PROFIT FROM OUR EXPERIENCE" registered on October 23, 2001 and "COUNSELOR REALTY" registered on April 25, 2023, the company's decision to enforce these trademarks is discretionary.

This discretion also extends to protecting franchisees against claims of infringement or unfair competition. Counselor Realty is not obligated to protect a franchisee's use of the licensed marks or defend them against infringement claims. Therefore, a franchisee could potentially face legal challenges related to trademark use without the direct support of Counselor Realty.

This is a common practice in franchising, as franchisors often reserve the right to control trademark enforcement. However, it's crucial for prospective franchisees to understand the extent of support they can expect from Counselor Realty in protecting their right to use the brand's trademarks. Franchisees should discuss with Counselor Realty what specific protections and assistance the company typically provides in cases of trademark infringement or unfair competition.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.