factual

Is Counselor Realty obligated to protect a franchisee's use of the licensed trademarks?

Counselor_Realty Franchise · 2025 FDD

Answer from 2025 FDD Document

Counselor reserves sole discretion to determine what steps, if any, are to be taken in any instance of unauthorized use or infringement of any of its Marks and has complete control of any litigation or settlement in connection with any claim of an infringement, unfair competition or unauthorized use with respect to the Marks. Counselor is not obligated to protect your use of the licensed Marks or to protect you against claims of infringement or unfair competition.

Source: Item 13 — TRADEMARKS (FDD pages 23–24)

What This Means (2025 FDD)

According to Counselor Realty's 2025 Franchise Disclosure Document, Counselor Realty is not obligated to protect a franchisee's use of licensed marks. Counselor Realty maintains sole discretion in determining the steps to address unauthorized use or infringement of its marks. This includes complete control over any litigation or settlements related to claims of infringement, unfair competition, or unauthorized use of the marks.

This means that as a Counselor Realty franchisee, you cannot rely on Counselor Realty to take action against others who may be infringing on the Counselor Realty trademarks. You also cannot depend on Counselor Realty to defend you against claims that you are infringing on someone else's trademark rights or engaging in unfair competition.

This is a significant risk for franchisees, as protecting trademarks can be costly and time-consuming. If a franchisee believes their use of the Counselor Realty marks is being infringed upon, they will need to decide whether to pursue legal action on their own, without any obligation from Counselor Realty to assist. Similarly, if a franchisee is accused of infringing on another party's trademark, they will be responsible for their own defense. This differs from some franchise systems where the franchisor takes a more active role in protecting and defending the use of its trademarks by franchisees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.