What must occur for the Counselor Realty franchise agreement to be effective?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the franchise agreement is not effective until it is fully executed by both Counselor Realty and the franchisee, and Counselor Realty issues a notice of approval to the franchisee. This means that simply signing the agreement is not enough to make it binding. Counselor Realty must also formally approve the agreement.
This requirement protects both Counselor Realty and the franchisee. It allows Counselor Realty to ensure that the franchisee meets all of its qualifications and that the location is suitable for a Counselor Realty franchise. It also gives the franchisee time to review the agreement and seek legal advice before it becomes binding.
Prospective franchisees should ensure they understand all terms and conditions before signing and that they receive written notice of approval from Counselor Realty to confirm the agreement is in effect. It is also important to note that the FDD emphasizes the franchisee's responsibility to review the agreement with legal counsel or a professional business advisor before entering into the agreement.