What laws and regulations must a Counselor Realty Business comply with?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
ELL
Counselor requires you to confine your Business to the operation of a full service residential and/or commercial real estate brokerage business. You may not conduct any other business or activity at the Office (or any Additional Office or Extension Office), and you may not offer or sell any product or service from the Business except those authorized by Counselor. Your Business may be identified only by the Marks designated by Counselor. Your Business must operate in full compliance with all applicable local, state and federal laws and regulations. The Franchise Agreement also contains certain covenants restricting your freedom to engage in certain competitive activities, and requires you to indemnify Counselor and its affiliates for all claims and losses related to the operation of your Business. See Items 9(p) and 17, and Exhibit B.
17. RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
The following tables list certain important provisions of the Franchise Agreement. You should read these provisions in the Franchise Agreement attached to this Franchise Disclosure Document. This table is qualified in its entirety by reference to the full text of the Franchise Agreement.
FRANCHISE AGREEMENT
| Provision | Section(s) in Franchise or Other Agreement | Summary |
|---|---|---|
| j. Assignment of contract by franchisor | Section 9.4 | Counselor may transfer its interest in Franchise Agreement by notice to you |
| k. "Transfer" by franchisee -- definition | Section 9.1 | Includes transfer of your interest in Franchise Agreement, the Office, Business or Business assets, or an interest in your business entity or your owners |
| l. Franchisor approval of transfer by franchisee | Section 9.1 | Counselor has the right to consent to all transfers (other than a transfer of less than a majority interest in your business entity or your owners) and will consent if Counselor deems transferee qualified and conditions specified in Franchise Agreement are satisfied |
| m. Conditions for franchisor approval of transfer | Sections 9.1, 9.2 | Transferee qualifies; payment of transfer fee; payment of all amounts owing; renovation to then-current System standards; |
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 25)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, a franchisee must operate their business in accordance with all applicable local, state, and federal laws and regulations. This includes maintaining a bona fide real estate broker's license in good standing under the laws of the state where the business is located. If the franchisee is a partnership, corporation, or other entity, they must be legally authorized to do business in the state. Franchisees must also keep all necessary licenses and permits required by public authorities in force during the franchise term.
The FDD specifically mentions that the Wisconsin Department of Regulation and Licensing, the Wisconsin Realtors Association, the National Association of Realtors, local Boards of Realtors, and the Federal Trade Commission have adopted various regulations governing the activities and business practices of real estate agents. Franchisees must comply with all of these regulations.
In addition to legal and regulatory compliance, Counselor Realty requires franchisees to adhere to the Counselor Realty Franchise Policy Guidelines and System standards, which may change periodically and require additional investment or expenditures. Franchisees must also ensure that all advertising programs, materials, and media conform to Counselor Realty's brand standard and image. The Franchise Agreement also contains certain covenants restricting a franchisee's freedom to engage in certain competitive activities, and requires franchisees to indemnify Counselor Realty and its affiliates for all claims and losses related to the operation of their Business.