What is the purpose of the 'RECEIPT' section mentioned after the state effective dates for Counselor Realty?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
RECEIPT
THIS DISCLOSURE DOCUMENT SUMMARIZES CERTAIN PROVISIONS OF THE FRANCHISE AGREEMENT AND OTHER INFORMATION IN PLAIN LANGUAGE. READ THIS FRANCHISE DISCLOSURE DOCUMENT AND ALL AGREEMENTS CAREFULLY.
IF COUNSELOR OFFERS YOU A FRANCHISE, COUNSELOR MUST PROVIDE THIS FRANCHISE DISCLOSURE DOCUMENT TO YOU 14 CALENDAR DAYS BEFORE YOU SIGN A BINDING AGREEMENT WITH, OR MAKE A PAYMENT TO, COUNSELOR OR ITS AFFILIATES IN CONNECTION WITH THE PROPOSED FRANCHISE SALE.
IF COUNSELOR DOES NOT DELIVER THIS DISCLOSURE DOCUMENT ON TIME OR IF IT CONTAINS A FALSE OR MISLEADING STATEMENT, OR A MATERIAL OMISSION, A VIOLATION OF FEDERAL AND STATE LAW MAY HAVE OCCURRED AND SHOULD BE REPORTED TO THE FEDERAL TRADE COMMISSION, WASHINGTON, D.C. 20580 AND THE WISCONSIN COMMISSIONER OF SECURITIES, 345 WEST WASHINGTON AVENUE, 4TH FLOOR, MADISON, WISCONSIN 53703.
I have received a Franchise Disclosure Document dated April 21, 2025 for the State of Wisconsin that included the following exhibits:
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the 'RECEIPT' section in Counselor Realty's FDD serves to acknowledge that the prospective franchisee has received the FDD. It emphasizes the importance of carefully reading the document and all related agreements. The document states that it summarizes certain provisions of the franchise agreement and other information in plain language.
The 'RECEIPT' section also outlines the mandatory waiting period. Counselor Realty must provide the Franchise Disclosure Document to the prospective franchisee 14 calendar days before they sign a binding agreement or make any payment to Counselor Realty or its affiliates related to the franchise sale. This waiting period is designed to allow the franchisee adequate time to review the document and seek professional advice.
Furthermore, the 'RECEIPT' section informs the franchisee of their rights and recourse if Counselor Realty fails to deliver the FDD on time, or if the document contains false, misleading, or omits material information. In such cases, the franchisee is advised to report the violation to the Federal Trade Commission and the Wisconsin Commissioner of Securities. The FDD includes a line for the franchisee to acknowledge receipt of the Franchise Disclosure Document dated April 21, 2025, for the State of Wisconsin, along with a list of included exhibits.