Does Counselor Realty have to provide a cure period for all breaches of the franchise agreement?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) We may terminate for good cause if you perform any intentional, material, repeated or continuous breach of this Agreement. We must provide you with 60 days' written notice of termination, specifying the cause for termination. Except as provided below, you shall have 30 days from delivery of notice to cure the breach (except in the case of non-payment of sums due, in which case you shall have seven days to cure the breach). If you fail to do so this Agreement shall terminate on expiration of the 60-day notice period.
- (b) This Agreement shall terminate immediately upon delivery of notice to you if: (i) you misrepresent or omit material information on your application; or (ii) you fail to locate a suitable site or open the Office for business within the time required under section 1.2 of this Agreement; or (iii) you become insolvent or bankrupt; or (iv) you transfer or attempt to transfer this Agreement without our consent; or (v) you abandon this Agreement, the Office or the Business; or (vi) you (or a principal officer, director, or partner of Franchisee) are convicted of, or plead guilty or no contest to, any charge of violation of any law relating to the Office (including any Additional Office or Extension Office) and
Business, or of any felony; or (vii) you perform any act, or fail to take an action, the result of which impairs or threatens to impair the goodwill associated with the Marks; or (viii) you are in continuous or repeated breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, Counselor Realty does not have to provide a cure period for all breaches of the franchise agreement. For an intentional, material, repeated, or continuous breach of the agreement, Counselor Realty must provide 60 days' written notice of termination, and the franchisee has 30 days to cure the breach. However, if the breach is due to non-payment of sums due, the franchisee only has seven days to cure the breach.
There are also several instances where the agreement can be terminated immediately upon delivery of notice without a cure period. These include misrepresentation or omission of material information on the application, failure to locate a suitable site or open the office for business within the required time, insolvency or bankruptcy, unauthorized transfer of the agreement, abandonment of the agreement, office, or business, conviction of a crime relating to the office, impairment of goodwill associated with the marks, or continuous or repeated breach of the agreement.
This means that a Counselor Realty franchisee needs to be aware of the specific terms of the agreement and the potential consequences of any breach. While some breaches allow for a cure period, others can lead to immediate termination of the agreement. It is important to maintain open communication with Counselor Realty and address any potential issues promptly to avoid termination.