Who owns the Counselor Realty marks?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) The Marks are our exclusive and valuable property. You have no right, ownership or other interest in or to any of the Marks except the qualified license to use them in strict conformity with this Agreement;
(c) We may change the System and the Marks periodically, and when we do, you must promptly conform the Business to the revised requirements, at your cost;
(d) You shall not directly or indirectly sublicense, delegate or transfer any of the rights licensed by this Agreement except in accordance with Article 9;
(e) We and our affiliates may conduct various business activities, including residential and commercial real estate brokerage businesses; and
(f) You acknowledge that the System was developed by us at considerable expense and investment and that your operation of a "Counselor" franchise is possible only with our assistance and ongoing advisory services. You agree that the disclosure or unauthorized or improper use of the System may cause Counselor or other franchisees irreparable harm, and you agree not to engage in such practices.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the franchisor owns the Counselor Realty marks. The franchise agreement states that the marks are the exclusive and valuable property of Counselor Realty. Franchisees are granted a qualified license to use the marks, but only in strict accordance with the franchise agreement. Franchisees do not have any right, ownership, or other interest in the marks beyond this limited license.
Counselor Realty retains the right to change the marks periodically, and franchisees are obligated to update their businesses to conform to these changes at their own expense. The agreement also stipulates that any use of the marks by a franchisee benefits Counselor Realty, and all goodwill associated with the marks belongs to Counselor Realty. Franchisees are prohibited from contesting Counselor Realty's ownership or registration of the marks.
Upon termination or expiration of the franchise agreement, the franchisee's right to use the marks immediately reverts to Counselor Realty. The franchisee must then cease using the marks and any confusingly similar names or marks, including domain names. This ensures that Counselor Realty maintains complete control over its brand identity and prevents former franchisees from leveraging the brand's goodwill after their franchise agreement ends.
This arrangement is typical in franchising, as it protects the franchisor's intellectual property and ensures consistent brand representation across all franchise locations. Prospective franchisees should understand that they are essentially renting the brand and must adhere to the franchisor's standards to maintain the integrity of the brand.