What is the franchisee's obligation regarding the disclosure of the Counselor Realty system?

According to the 2025 Counselor Realty Franchise Disclosure Document, franchisees acknowledge that the Counselor Realty system was developed at considerable expense and investment, and that their franchise operation is only possible with Counselor Realty's assistance and ongoing advisory services. Franchisees agree that the disclosure or unauthorized/improper use of the Counselor Realty system may cause irreparable harm to Counselor Realty or other franchisees. Therefore, franchisees agree not to engage in such practices.

This means a prospective Counselor Realty franchisee must recognize the value and confidentiality of the franchisor's system. They are prohibited from disclosing or misusing any aspect of the system, as this could negatively impact Counselor Realty's brand and other franchisees. This obligation extends throughout the term of the Franchise Agreement.

This type of clause is standard in franchise agreements to protect the franchisor's intellectual property and maintain consistency across the franchise network. A prospective franchisee should carefully consider this obligation and ensure they are prepared to uphold the confidentiality of the Counselor Realty system. Failure to do so could result in legal action or termination of the franchise agreement.