Can a Counselor Realty franchisee hire a business manager to participate in the day-to-day operations?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
You or a Business manager you hire is required to participate personally in the day-to-day operations of the Business. Your hired manager (if any) is not required to hold an equity interest in the franchise. At your request, we may provide you and up to two of your key personnel initial training (the amount of such initial training shall be as determined by Counselor), and, upon your request, supplemental initial or ongoing training. See Items 6 and 11. You may not change ownership or control of the Franchise Agreement, the Office, any Additional Office, any Extension Office or Business, or a majority of the assets of the Office, any Additional Office, any Extension Office or Business, or, if you are an entity, ownership of a majority ownership interest of, or control of, you or any of your owners, in each case without our consent. See Item 17. If you are a
partnership, corporation or other entity, all of your partners, shareholders or owners from time to time shall execute the guaranty attached to the Franchise Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 24–25)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, a franchisee can hire a business manager to participate in the day-to-day operations of the business. The FDD states that either the franchisee or a business manager they hire is required to participate personally in the business's daily operations. The hired manager is not required to hold an equity interest in the franchise.
This offers flexibility for Counselor Realty franchisees who may not want to be involved in the daily operations themselves or who may need assistance in managing the business. However, the franchisee or their business manager must furnish their personal full time and attention and best efforts to the management and operation of their Business.
It's important to note that if a franchisee hires a business manager, they must require the business manager to sign a confidentiality agreement. This ensures that the business's confidential and proprietary information is protected. The franchisee remains responsible for ensuring the business is managed effectively, whether they manage it themselves or delegate it to a hired manager.