What does 'PROSPECTIVE FRANCHISEE' refer to on the Counselor Realty disclosure document acknowledgement?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
| A. B. C. | Financial Statements Franchise Agreement List of Franchises | D. E. | List of State Franchise Administrators State Addendum | ||
|---|---|---|---|---|---|
| Name | Signature | PROSPECTIVE FRANCHISEE (Print or type name of corporation or partnership) Date | |||
| 1. | |||||
| 2. | |||||
| 3. | |||||
| 4. | DISCLOSURE DOCUMENT AND MUST BE RETURNED IMMEDIATELY TO: Name, address and telephone number of the franchise seller offering the franchise: | THIS PAGE MUST BE SIGNED BY AN OFFICER OF A CORPORATION, THE GENERAL PARTNER(S) OF A PARTNERSHIP, OR ANY INDIVIDUAL RECEIVING A COPY OF THE FRANCHISE COUNSELOR REALTY FRANCHISING, INC. 3200 NW Main Street, Suite 110 Coon Rapids, Minnesota 55448 |
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, the term 'PROSPECTIVE FRANCHISEE' refers to the individual or entity that is considering purchasing a Counselor Realty franchise. The document requires the prospective franchisee to acknowledge receipt of the Franchise Disclosure Document (FDD). This acknowledgement includes signing and dating the document to confirm they have received it. If the prospective franchisee is a corporation or partnership, an officer of the corporation or a general partner of the partnership must sign the acknowledgement. This signature confirms that the prospective franchisee has received the FDD and understands its contents before moving forward with the franchise purchase.
The acknowledgement of receipt is a critical step in the franchise sales process. Counselor Realty must provide the FDD to the prospective franchisee at least 14 calendar days before they sign a binding agreement or make any payments related to the franchise. This waiting period allows the prospective franchisee to thoroughly review the document and seek legal and financial advice. The signature on the acknowledgement serves as proof that Counselor Realty has met this legal requirement.
The FDD contains important information about the Counselor Realty franchise system, including the franchise agreement, financial statements, and a list of current franchisees. Prospective franchisees should carefully review all of these documents to understand the obligations and risks associated with purchasing a franchise. They should also consult with their own business or legal advisor to get an explanation of their legal rights under applicable laws and regulations. By signing the acknowledgement, the prospective franchisee is not obligated to purchase a franchise, but they are confirming that they have received the information necessary to make an informed decision.