What payments are required for a Counselor Realty franchisee to transfer their franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section(s) in Franchise or Other Agreement | Summary |
|---|---|---|
| j. Assignment of contract by franchisor | Section 9.4 | Counselor may transfer its interest in Franchise Agreement by notice to you |
| k. "Transfer" by franchisee -- definition | Section 9.1 | Includes transfer of your interest in Franchise Agreement, the Office, Business or Business assets, or an interest in your business entity or your owners |
| l. Franchisor approval of transfer by franchisee | Section 9.1 | Counselor has the right to consent to all transfers (other than a transfer of less than a majority interest in your business entity or your owners) and will consent if Counselor deems transferee qualified and conditions specified in Franchise Agreement are satisfied |
| m. Conditions for franchisor approval of transfer | Sections 9.1, 9.2 | Transferee qualifies; payment of transfer fee; payment of all amounts owing; renovation to then-current System standards; execution of guaranty by buyer's shareholders or owners |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 25–29)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, a franchisee seeking to transfer their franchise must meet certain conditions, including the payment of a transfer fee. The exact amount of this transfer fee is not specified in the provided excerpts. In addition to the transfer fee, the franchisee must also ensure that all outstanding amounts owed to Counselor Realty are paid in full before the transfer can be approved. The franchise location may also need to be renovated to meet the then-current system standards, potentially incurring additional costs.
Furthermore, if the buyer is a business entity, the shareholders or owners of the buyer may be required to execute a guaranty. The franchisor also retains the right of first refusal to acquire the franchisee's business, which could impact the transfer process.
In practical terms, a prospective Counselor Realty franchisee should inquire about the specific amount of the transfer fee, the current system standards for renovation, and the details of the guaranty required from the buyer's shareholders or owners. Understanding these costs and conditions is essential for planning the potential sale of the franchise in the future. Since the specific transfer fee is not listed, it is important to contact Counselor Realty directly to obtain this information.