Is making a payment to Counselor Realty or its affiliates before receiving the FDD a violation?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
IF COUNSELOR OFFERS YOU A FRANCHISE, COUNSELOR MUST PROVIDE THIS FRANCHISE DISCLOSURE DOCUMENT TO YOU 14 CALENDAR DAYS BEFORE YOU SIGN A BINDING AGREEMENT WITH, OR MAKE A PAYMENT TO, COUNSELOR OR ITS AFFILIATES IN CONNECTION WITH THE PROPOSED FRANCHISE SALE.
IF COUNSELOR DOES NOT DELIVER THIS FRANCHISE DISCLOSURE DOCUMENT ON TIME OR IF IT CONTAINS A FALSE OR MISLEADING STATEMENT, OR A MATERIAL OMISSION, A VIOLATION OF FEDERAL AND STATE LAW MAY HAVE OCCURRED AND SHOULD BE REPORTED TO THE FEDERAL TRADE COMMISSION, WASHINGTON, D.C. 20580 AND THE WISCONSIN COMMISSIONER OF SECURITIES, 345 WEST WASHINGTON AVENUE, 4TH FLOOR, MADISON, WISCONSIN 53703
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, making a payment to Counselor Realty or its affiliates before receiving the FDD is a violation of franchise regulations. The FDD states that you may not make any payment to Counselor Realty or sign any contracts related to the franchise until at least 14 calendar days after you sign the Acknowledgements of Receipt at the back of the Franchise Disclosure Document. This 14-day period allows prospective franchisees to thoroughly review the FDD and seek professional advice before committing to the franchise.
This mandatory waiting period is a standard practice in the franchise industry, designed to protect potential franchisees from high-pressure sales tactics and ensure they have adequate time to assess the opportunity. The FDD is intended to provide all the material information necessary to make an informed decision.
If Counselor Realty does not deliver the Franchise Disclosure Document on time, or if it contains false or misleading statements, or a material omission, a violation of federal and state law may have occurred. Such violations should be reported to the Federal Trade Commission and the Wisconsin Commissioner of Securities. This underscores the importance of adhering to the mandated disclosure timelines and the potential legal ramifications of non-compliance.