In the Counselor Realty Franchise Agreement, what does 'Franchisee' refer to?

According to the 2025 Counselor Realty Franchise Disclosure Document, the term "Franchisee" refers to the party entering into the agreement with Counselor Realty Franchising, Inc. This is clarified within the context of the Franchise Agreement's effective date, specifying that the agreement is between Counselor Realty Franchising, Inc. and the entity or individual identified as "Franchisee" or "you."

For a prospective Counselor Realty franchisee, this means that the term "Franchisee" in the agreement legally designates them as the recipient of the franchise rights and obligations. It establishes their role as an independent contractor, not an employee, agent, partner, or joint venture of Counselor Realty. The agreement explicitly states that if the Franchisee is more than one person, all individuals are jointly and severally liable under the agreement. If the Franchisee is a partnership, corporation, or other entity, all partners, shareholders, or owners must execute a guaranty.

This definition is crucial because it outlines the legal standing of the franchisee in relation to Counselor Realty. It confirms that the franchisee is responsible for the day-to-day operations of the business, including managing employees and adhering to Counselor Realty's brand standards. The franchisee must also have a bona fide real estate broker's license and be legally authorized to conduct business in the state where the franchise is located.

Furthermore, the Franchisee is responsible for ensuring that their business operates according to the Franchise Policy Guidelines and all applicable laws and regulations. They are also responsible for using advertising materials that conform to Counselor Realty's brand standards. Understanding this definition is essential for any prospective franchisee to fully grasp their rights, responsibilities, and liabilities under the Counselor Realty Franchise Agreement.