What happens if the Counselor Realty transferee does not complete the required repairs and upgrades?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
entity, by contract or otherwise.
- 9.2 Other Conditions to Transfer. You must apply for our consent by submitting written notice of the pending transfer, with a complete application, signed by you and by the proposed transferee, and payment of the transfer fee, at least 60 days before the proposed transfer date. The transfer fee is $2,000 and applies to all transfers (excluding transfers described in, and in accordance with, the second to last sentence of Section 9.1). We may specifically withhold consent if: (i) you do not pay all amounts you owe to Counselor or its affiliates or to your suppliers; (ii) you (or the transferee) do not complete the repair, maintenance or upgrade of the Business' facility, fixtures, equipment, and signage to then-current System standards; or (iii) all shareholders or owne
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, if a franchisee seeks to transfer their franchise to a new owner, both the franchisee and the proposed transferee must meet certain conditions. One of these conditions is that the franchisee or the transferee must complete any necessary repairs, maintenance, or upgrades to the business's facilities, fixtures, equipment, and signage to meet the then-current Counselor Realty system standards.
Counselor Realty may withhold consent for the transfer if these repairs, maintenance, or upgrades are not completed. This means that the transfer of the franchise to the new owner could be blocked if the existing standards are not met. The FDD specifies that the transfer fee is $2,000 and applies to all transfers, but this fee is separate from the costs associated with any required repairs or upgrades.
This requirement ensures that all Counselor Realty locations maintain a consistent brand image and quality. For a prospective franchisee, this highlights the importance of understanding and adhering to system standards, not only for the ongoing operation of the franchise but also for any future transfer of ownership. It also places the onus on the seller to ensure compliance before a sale, or to negotiate the cost of upgrades with the potential buyer.