Does the Counselor Realty Franchise Disclosure Document state that Counselor Realty has been involved in bankruptcy proceedings?

According to the 2025 Counselor Realty Franchise Disclosure Document, neither Counselor Realty Franchising, Inc., nor any person previously identified in Item 1 or 2 of the FDD, has been involved as a debtor in proceedings under the U.S. Bankruptcy Code required to be disclosed in Item 4. This statement confirms that Counselor Realty and its key personnel and affiliates have not been involved in bankruptcy proceedings that would need to be disclosed to potential franchisees. This is a standard disclosure in franchise documents, intended to provide transparency about the financial stability and history of the franchisor and its leadership.

For a prospective franchisee, this information is reassuring as it indicates a stable financial background for Counselor Realty. Bankruptcy involvement can raise concerns about a company's ability to support its franchisees and maintain the brand's reputation. The absence of such disclosures suggests that Counselor Realty has managed its finances responsibly and has not faced significant financial distress requiring bankruptcy protection.

It is important for potential franchisees to carefully review Item 4 in its entirety to understand the specific requirements for disclosing bankruptcy proceedings. While the statement indicates no current or past issues, franchisees should also consider independently verifying this information through their own due diligence. This might include consulting with financial advisors or legal professionals to ensure a comprehensive understanding of the franchisor's financial health.