What is the purpose of the 'State Addendum' document for Counselor Realty?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
ny provision of the Franchise Agreement that is inconsistent with that law.
State Effective Dates
The following states have franchise laws that require that the Franchise Disclosure Document be registered or filed with the state, or be exempt from registration: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
This document is effective and may be used in the following states, where the document is filed, registered or exempt from registration, as of the Effective Date stated below:
| State | Effective Date |
|---|---|
| Minnesota | |
| Wisconsin |
Other states may require registration, filing, or exemption of a franchise under other laws, such as those that regulate the offer and sale of business opportu
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, a State Addendum is used to address specific legal requirements in states with franchise laws. These laws often mandate that the Franchise Disclosure Document (FDD) be registered or filed with the state, or be exempt from registration. The FDD lists states that have such franchise laws, including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
The State Addendum ensures that the Counselor Realty franchise agreement complies with these state-specific regulations. For example, the Wisconsin Addendum clarifies that Chapter 135 of the Wisconsin Statutes, known as the Wisconsin Fair Dealership Law, takes precedence over any conflicting provisions in the standard franchise agreement. This means that if a term in the franchise agreement clashes with Wisconsin law, the state law will govern the relationship between Counselor Realty and the franchisee in Wisconsin.
For a prospective Counselor Realty franchisee, the State Addendum is a critical document to review. It modifies the standard franchise agreement to align with the laws of their specific state, providing additional protections or clarifying obligations. Franchisees should carefully examine the addendum, along with the main FDD and franchise agreement, to fully understand their rights and responsibilities in their state. Consulting with a legal professional is advisable to ensure complete comprehension of these documents and their implications.