Does the Counselor Realty Franchise Disclosure Document mention any exceptions to the bankruptcy disclosure requirements?

According to the 2025 Counselor Realty Franchise Disclosure Document, there are no specific exceptions to bankruptcy disclosure requirements mentioned within Item 4. The document explicitly states that neither Counselor Realty nor any individuals previously identified in Items 1 or 2 have been involved as a debtor in proceedings under the U.S. Bankruptcy Code that would require disclosure in Item 4. This statement confirms that, as of the FDD's publication, there are no bankruptcy-related issues that Counselor Realty is required to disclose.

This absence of required bankruptcy disclosures suggests stability and financial health on the part of the franchisor and its key personnel. However, it is essential for a prospective franchisee to understand the full context of this statement. While the FDD indicates no current or past bankruptcy issues requiring disclosure, it does not guarantee future financial stability.

It is standard practice for franchise agreements to require disclosure of any material changes that could affect a franchisee's decision. Therefore, if any bankruptcy-related events were to occur after the publication of the FDD, Counselor Realty would likely be obligated to disclose those changes to potential franchisees. A prudent prospective franchisee should consider requesting updated financial information and inquiring about any material changes from Counselor Realty before making a final investment decision.

In summary, the 2025 FDD indicates no bankruptcy issues requiring disclosure for Counselor Realty or its key personnel. However, potential franchisees should conduct their own due diligence to ensure they have the most current information available before investing.