What notice must Counselor Realty issue to the franchisee for the franchise agreement to be effective?

According to Counselor Realty's 2025 Franchise Disclosure Document, the franchise agreement is not effective until it is fully executed by both the franchisee and Counselor Realty, and Counselor Realty issues a notice of approval to the franchisee. This means that even after the franchisee signs the agreement, it is not binding until Counselor Realty formally approves it and notifies the franchisee of this approval.

This provision protects Counselor Realty by ensuring they have the final say in who becomes a franchisee. It allows them to review the signed agreement and the franchisee's qualifications before committing to the franchise relationship. For the franchisee, this means there is a period of uncertainty after signing the agreement but before receiving the notice of approval. During this time, the franchisee may be making preparations to open the business, but the franchise agreement is not yet in effect.

Prospective franchisees should confirm the typical timeframe for Counselor Realty to issue this notice of approval and understand the criteria Counselor Realty uses to grant approval. Franchisees should also clarify whether they can begin searching for a site or taking other preparatory steps during this interim period. This notice of approval is a critical step in finalizing the franchise agreement and establishing the rights and obligations of both parties.