Which item in the Counselor Realty Disclosure Document relates to the opening of the franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
A sample of Counselor's Franchise Agreement is included in this Franchise Disclosure Document at Exhibit B. You are encouraged to obtain such independent legal and financial advice as you deem appropriate to obtain a full understanding of the franchise (and related documents) offered by this Franchise Disclosure Document. You should consult your own business or legal advisor for an explanation of your legal rights under applicable laws and regulations. You may not make any payment to Counselor or sign any contract(s) relating to this franchise until fourteen (14) calendar days after you sign the Acknowledgements of Receipt at the back of this Franchise Disclosure Document. You should also refrain from taking any other action or making any commitments in regard to a Counselor franchise until and unless you are notified in writing by Counselor that your application for a franchise has been approved and that an Counselor franchise has been issued in your name.
[Item 1: THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES]
Counselor owns a proprietary and distinctive system for a network of full service residential and commercial real estate brokerage service businesses (the "System"). The System is described in the Franchise Agreement and in Counselor's Franchise Policy Guidelines. A current Franchise Agreement is included in this Franchise Disclosure Document at Exhibit B. Counselor and its affiliates own various names, trademarks, stylized logos, slogans, and symbols (the "Marks") used in the System. See Item 13.
- 13.7 Review. This Agreement is not effective until fully executed by both parties and we issue notice of approval to you. You acknowledge that we have recommended and that you have had an opportunity to review this Agreement, our Franchise Disclosure Document and other relevant information before entering into this Agreement with legal counsel or a professional business advisor of your choosing.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 16–17)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, Item 22, "Contracts", and specifically Exhibit B, the "Franchise Agreement", are the most relevant sections concerning the opening of a franchise. Item 22 advises prospective franchisees to seek independent legal and financial advice to fully understand the franchise agreement and related documents. It also stipulates that a franchisee cannot make any payments or sign any contracts related to the franchise until 14 calendar days after signing the Acknowledgements of Receipt in the back of the FDD. Furthermore, the document cautions against relying on any information not contained within the Franchise Agreement or the FDD itself.
Item 1 of the FDD also mentions the Franchise Agreement in Exhibit B, noting that the Counselor Realty System is described within it, along with Counselor Realty's Franchise Policy Guidelines. This item also states that the franchise is a license to operate a Counselor Realty business at a single location that the franchisee chooses, subject to Counselor Realty's consent. The Franchise Agreement authorizes the franchisee to use certain Marks in the operation of the business.
Item 13.7 of the Franchise Agreement states that the agreement is not effective until fully executed by both parties and Counselor Realty issues a notice of approval. It also acknowledges that Counselor Realty has recommended that the franchisee has had an opportunity to review the agreement, the FDD, and other relevant information with legal counsel or a professional business advisor before entering into the agreement. This highlights the importance of thoroughly reviewing all documents and seeking professional advice before committing to the franchise.