If a Counselor Realty franchisee dies, who must apply for consent to transfer the franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 25–29)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, in the event of the death, disability, or incapacity of a franchisee, their executor, heir, or legal representative is responsible for applying for the franchisor's consent to transfer the franchise agreement. This application must be made within 60 days of the event. If the franchisee is a corporation or partnership, the entity itself is responsible for applying.
This requirement ensures that Counselor Realty maintains control over who operates its franchises, even in unforeseen circumstances. The successor must also meet the standard conditions for transfer. These conditions likely include demonstrating the transferee's qualifications to operate the business, payment of any outstanding amounts owed to Counselor Realty, and adherence to the then-current system standards.
This provision is fairly standard in franchising, as franchisors typically want to ensure that any new franchisee meets their operational and financial criteria to protect the brand and maintain consistency across the franchise system. It is important for prospective franchisees to understand these transfer conditions and discuss them with their legal and financial advisors, especially when considering the long-term implications for their estate or business succession plans.