Is the Counselor Realty franchise agreement based on mutual consideration between the parties?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
COUNSELOR offers franchises for a full service residential and/or commercial real estate brokerage service business, operating in accordance with a distinctive and proprietary system established by COUNSELOR (the "System") and identified by various COUNSELOR trademarks (the "Marks"). Franchisee wishes to establish and operate a business using the System.
In consideration of the foregoing and the undertakings herein, the parties agree:
1. FRANCHISE.
1.1 Grant.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, the franchise agreement is based on mutual consideration. The document states that the parties agree to the terms outlined "in consideration of the foregoing and the undertakings herein".
For Counselor Realty, this means granting the franchisee a non-exclusive license to use their system and marks to operate a real estate brokerage business at a specific location. The franchisee, in turn, agrees to operate the business according to Counselor Realty's system, protect the brand's confidential information, and devote their full time and effort to the business. This exchange of promises and obligations constitutes the mutual consideration necessary for a binding agreement.
This mutual consideration is a standard element of franchise agreements. It ensures that both Counselor Realty and the franchisee have a vested interest in the success of the business and are legally bound to fulfill their respective obligations. Prospective franchisees should carefully review the entire franchise agreement to fully understand the scope of their obligations and the benefits they will receive in return.