In the Counselor Realty Franchise Agreement, what is the relationship between COUNSELOR REALTY FRANCHISING, INC. and its affiliates?

According to the 2025 Counselor Realty Franchise Disclosure Document, COUNSELOR REALTY FRANCHISING, INC. and its affiliates are considered as one entity within the context of the franchise agreement. Specifically, the agreement is made between COUNSELOR REALTY FRANCHISING, INC. and its affiliates, referred to collectively as "COUNSELOR" or "we", and the franchisee. This means that the franchisor and its affiliates are jointly responsible for upholding the terms of the agreement.

This designation has implications for prospective franchisees. Counselor Realty and its affiliates may conduct various business activities, including residential and commercial real estate brokerage businesses. This clause clarifies that Counselor Realty's affiliates can operate similar businesses, which might compete with the franchisee's business. However, the franchisee is still obligated to adhere to the franchise agreement and system standards.

Furthermore, the franchise agreement states that no other person except Counselor Realty's affiliate is intended to be a beneficiary of this agreement. This implies that while affiliates are part of the "COUNSELOR" entity, third parties do not have the same rights or benefits under the agreement. This reinforces the direct relationship between the franchisee and the franchisor, along with its affiliates, as a single unit.