Does Counselor Realty permit franchisees to use proprietary information?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
Counselor does not grant you the right to use any item covered by a patent or copyright, but does permit you to use proprietary information in applicable components of the Franchise Policy Guidelines. Although Counselor has not applied for federal copyright registration of the Franchise Policy Guidelines or its individual components, the information in the entire Franchise Policy Guidelines is proprietary and Counselor owns the copyright in the entire Franchise Policy Guidelines, and in various advertising and sales promotion materials, and customer convenience and other materials, used in connection with your Office.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD page 24)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, while franchisees are not granted rights to patented or copyrighted items, they are permitted to use proprietary information found within the Franchise Policy Guidelines. Counselor Realty retains copyright ownership of the Franchise Policy Guidelines and various advertising, sales promotion, and customer materials used by the franchisee's office. This means that while franchisees can utilize the information within the guidelines to operate their business, they do not own the rights to these materials.
This permission to use proprietary information is limited to the operation of the franchise during the term of the Franchise Agreement. Upon termination or expiration of the agreement, the franchisee must return the Franchise Policy Guidelines and cease using any confidential, proprietary, or trade secret information provided by Counselor Realty. Counselor Realty also retains the right to access and remove any confidential or proprietary information and materials from the franchisee's office, either physically or electronically.
These stipulations are typical in franchising, as they protect the franchisor's brand and system. Prospective franchisees should carefully review the Franchise Policy Guidelines to understand the scope of permitted use and the restrictions on proprietary information, especially regarding advertising and marketing materials. Understanding these limitations is crucial for operating the franchise within the bounds set by Counselor Realty and avoiding potential breaches of the agreement.