Following termination or expiration of a Counselor Realty franchise, what financial obligations remain?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
hout limitation the obligations set forth in Sections 7.2(b) and (d).
12. TERMINATION CONSEQUENCES.
Upon termination or expiration of this Agreement, all rights licensed herein, and your interest herein, revert to Counselor automatically, and you must immediately:
- (a) stop using the Marks and System, any materials containing or depicting the Marks or System, and any other name or mark confusingly similar to the Marks, including domain names;
- (b) pay all sums due to Counselor or its affiliates or which we have guaranteed;
- (c) return the Franchise Policy Guidelines and all other confidential or trade secret information to us, and stop using distinctive, proprietary or confidential items, methods or other techniques, systems or know-how we disclosed to you.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, several financial obligations may remain for the franchisee. Specifically, the franchisee must pay all sums due to Counselor Realty or its affiliates, including any amounts that Counselor Realty has guaranteed on the franchisee's behalf. This means that any outstanding fees, royalties, or other financial obligations to Counselor Realty must be settled.
In addition to direct payments, the franchisee is responsible for costs associated with ceasing operations under the Counselor Realty brand. This includes removing all distinctive inventory, trade dress, and leasehold improvements to eliminate any similarity to other Counselor Realty businesses. Practically, this could involve expenses for removing signage, altering the decor, and modifying the layout of the office space to ensure it no longer resembles a Counselor Realty location.
Furthermore, the termination or expiration of the agreement does not eliminate certain post-termination obligations, including those related to confidentiality and non-solicitation. While the financial implications of breaching these obligations are not explicitly detailed, franchisees should be aware that legal action and associated costs could arise from violating these terms. Therefore, it is important for prospective franchisees to understand all potential financial obligations that could extend beyond the termination date.