To whom must a Counselor Realty franchisee report any claim involving the Business?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.1 Records and Reports. You must keep and give us the information, reports, books and records concerning the Office (including any Additional Office and Extension Office) and Business we specify, on forms or in media we specify periodically. You will allow us to inspect, copy and audit such records, both at the Office (including any Additional Office and Extension Office) and remotely by electronic means. If Franchisee is a partnership, corporation or other entity, you must provide us with copies of Franchisee's organizational documents (including, without limitation, as applicable, its articles of incorporation, bylaws, operating agreement or partnership agreement) and breakdown of ownership. You must report promptly to us any claim involving the Business and any change in the Franchisee's organizational documents.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, a franchisee must promptly report any claim involving the Business to Counselor Realty. This requirement is part of the franchisee's obligations to keep Counselor Realty informed about the operations and potential liabilities of the franchise.
This means that if a customer, employee, or any other party makes a claim against the Counselor Realty franchise, the franchisee is obligated to notify Counselor Realty about the claim. This could include claims related to property damage, personal injury, breach of contract, or any other legal issue. The prompt reporting allows Counselor Realty to be aware of potential legal issues and to provide guidance or support to the franchisee in addressing the claim.
By requiring franchisees to report claims, Counselor Realty aims to protect its brand reputation and manage potential liabilities across the franchise system. It also enables Counselor Realty to offer assistance and ensure that claims are handled in a manner consistent with the company's policies and legal requirements. This reporting requirement is a standard practice in franchising, as franchisors typically need to monitor and manage risks associated with their brand and operations.