What happens if a Counselor Realty franchisee abandons the agreement, office, or business?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) This Agreement shall terminate immediately upon delivery of notice to you if: (i) you misrepresent or omit material information on your application; or (ii) you fail to locate a suitable site or open the Office for business within the time required under section 1.2 of this Agreement; or (iii) you become insolvent or bankrupt; or (iv) you transfer or attempt to transfer this Agreement without our consent; or (v) you abandon this Agreement, the Office or the Business; or (vi) you (or a principal officer, director, or partner of Franchisee) are convicted of, or plead guilty or no contest to, any charge of violation of any law relating to the Office (including any Additional Office or Extension Office) and
Business, or of any felony; or (vii) you perform any act, or fail to take an action, the result of which impairs or threatens to impair the goodwill associated with the Marks; or (viii) you are in continuous or repeated breach of this Agreement.
(c) Termination or expiration of this Agreement does not abrogate posttermination obligations of a party, including without limitation the obligations set forth in Sections 7.2(b) and (d).
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:
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, the franchise agreement can be terminated immediately if the franchisee abandons the agreement, the office, or the business.
Specifically, Counselor Realty can terminate the franchise agreement with immediate notice if a franchisee abandons the franchise agreement, the physical office location, or the overall real estate brokerage business. This is listed as one of several conditions that allow for immediate termination, without the typical 60-day written notice and opportunity to cure that applies to other breaches of the agreement.
Upon termination, all rights granted to the franchisee under the agreement revert back to Counselor Realty automatically. This means the franchisee must immediately cease operating as a Counselor Realty franchise. The franchisee also remains responsible for post-termination obligations, such as those related to confidentiality and non-solicitation, as outlined in section 7.2(b) and (d) of the franchise agreement.