What is a Counselor Realty franchisee acknowledging about the System's development?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) You acknowledge that the System was developed by us at considerable expense and investment and that your operation of a "Counselor" franchise is possible only with our assistance and ongoing advisory services. You agree that the disclosure or unauthorized or improper use of the System may cause Counselor or other franchisees irreparable harm, and you agree not to engage in such practices.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 FDD, a Counselor Realty franchisee acknowledges that the Counselor Realty System was developed at considerable expense and investment by the franchisor. The franchisee recognizes that their ability to operate a Counselor Realty franchise is contingent upon the franchisor's assistance and ongoing advisory services.
This acknowledgment highlights the importance of the franchisor's role in the success of the franchise. It also underscores the franchisee's dependence on the franchisor's expertise and support. The franchisee agrees that they understand that unauthorized use of the Counselor Realty System could cause irreparable harm to Counselor Realty and its other franchisees.
This clause protects Counselor Realty's investment in its System and brand. It also sets clear expectations for franchisees regarding their reliance on the franchisor and the importance of adhering to the System standards. Prospective franchisees should carefully consider the implications of this acknowledgment and ensure they are comfortable with the level of dependence it implies.