What happens to the Extension Office upon termination of a Counselor Realty franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
12. TERMINATION CONSEQUENCES.
Upon termination or expiration of this Agreement, all rights licensed herein, and your interest herein, revert to Counselor automatically, and you must immediately:
- (a) stop using the Marks and System, any materials containing or depicting the Marks or System, and any other name or mark confusingly similar to the Marks, including domain names;
- (b) pay all sums due to Counselor or its affiliates or which we have guaranteed;
- (c) return the Franchise Policy Guidelines and all other confidential or trade secret information to us, and stop using distinctive, proprietary or confidential items, methods or other techniques, systems or know-how we disclosed to you. Counselor or its affiliate may access and remove any confidential or proprietary information and materials, either at the Office (including any Additional Office and Extension Office) or remotely by electronic means ; and
- (d) remove all distinctive inventory, trade dress, and leasehold improvements to eliminate any similarity in design, structure, signage, trade dress, decor, color or layout to the distinctive appearance of other Counselor businesses.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty FDD, upon termination or expiration of the Franchise Agreement, all licensed rights and the franchisee's interest automatically revert to Counselor Realty. The franchisee must immediately stop using Counselor Realty's Marks and System, including any materials depicting them, and any confusingly similar names or marks, including domain names.
The franchisee is also obligated to pay all outstanding sums due to Counselor Realty or its affiliates. They must return the Franchise Policy Guidelines and all other confidential or trade secret information, ceasing the use of any distinctive, proprietary, or confidential items, methods, techniques, systems, or know-how disclosed by Counselor Realty. Counselor Realty or its affiliates have the right to access and remove any confidential or proprietary information and materials, either at the Office, any Additional Office, or Extension Office, or remotely via electronic means.
Finally, the franchisee must remove all distinctive inventory, trade dress, and leasehold improvements to eliminate any similarity in design, structure, signage, trade dress, decor, color, or layout to the distinctive appearance of other Counselor Realty businesses. These obligations ensure that upon termination, the franchisee completely disassociates from the Counselor Realty brand and system, protecting the brand's integrity and confidential information.