What happens if a Counselor Realty franchisee dies or becomes disabled?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
s of the transferee do not execute the guaranty of the new Agreement.
- 9.3 Franchisee Death or Disability. Your death, disability or incapacity (or of a principal officer, director or partner of Franchisee) is also a "transfer." Your executor, heir or legal representative (or the corporation or partnership, if an entity) must apply within 60 days of the death or incapacity for our consent to transfer this Agreement and satisfy the other conditions above.
- 9.4 Transfer by Franchisor. We may transfer our interest in this Agreement at our discretion.
- 9.5 Relocation. You may relocate with the prior written consent of Counselor, to a suitable site within the Territory. The replacement Office must open within 120 days after the prior facility closes. The replacement Office must comply with the requirements of this Agreement and then-current System standards.
9.6 Right of First Refusal.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the death, disability, or incapacity of a franchisee (or a principal officer, director, or partner of the franchisee) is considered a "transfer" of the franchise agreement. Within 60 days of the event, the executor, heir, or legal representative of the franchisee (or the corporation or partnership, if the franchisee is an entity) must apply for Counselor Realty's consent to transfer the agreement.
This application for transfer must meet the standard conditions for transfers, as outlined in the franchise agreement. This process includes submitting a written notice of the pending transfer with a complete application signed by both the current franchisee's representative and the proposed transferee, along with payment of a $2,000 transfer fee.
Counselor Realty may withhold consent if the franchisee owes any amounts to Counselor Realty or its affiliates, or to the franchisee's suppliers. Consent may also be withheld if the facility, fixtures, equipment, and signage of the business are not upgraded to the current system standards, or if all shareholders or owners of the transferee do not execute the guaranty of the new agreement. This ensures that the franchise continues to operate in accordance with Counselor Realty's standards and that any outstanding obligations are addressed during the transfer process.