If a Counselor Realty franchise is terminated, what financial obligations remain for the franchisee?
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 Counselor Realty's 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, all licensed rights and interests automatically revert to Counselor Realty. The franchisee must immediately cease using Counselor Realty's Marks and System, including any confusingly similar names or domain names.
Additionally, the franchisee is obligated to pay all outstanding sums due to Counselor Realty or its affiliates, including any amounts Counselor Realty has guaranteed on the franchisee's behalf. The franchisee must return the Franchise Policy Guidelines and all other confidential or trade secret information, and discontinue using any distinctive, proprietary, or confidential items, methods, or know-how disclosed by Counselor Realty. Counselor Realty or its affiliate has the right to access and remove any confidential or proprietary information and materials from the franchisee's office, including any Additional Office and Extension Office, either physically or remotely through electronic means.
Finally, the franchisee is required to 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 post-termination obligations are typical in franchise agreements to protect the brand's intellectual property and ensure a clean break between the franchisee and the franchisor.