What does Counselor Realty recommend the franchisee do with the Franchise Disclosure Document before entering into the agreement?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
in the Company's financial statements.
22. CONTRACTS
A sample of Counselor's Franchise Agreement is included in this Franchise Disclosure Document at Exhibit B. You are encouraged to obtain such independent legal and financial advice as you deem appropriate to obtain a full understanding of the franchise (and related documents) offered by this Franchise Disclosure Document. You should consult your own business or legal advisor for an explanation of your legal rights under applicable laws and regulations. You may not make any payment to Counselor or sign any contract(s) relating to this franchise until fourteen (14) calendar days after you sign the Acknowledgements of Receipt at the back of this Franchise Disclosure Document. You should also refrain from taking any other action or making any commitments in regard to a Counselor franchise until and unless you are notified in writing by Counselor that your application for a franchise has been approved and that an Counselor franchise has been issued in your name.
CAUTION
ANY FACT, INFORMATION, PROMISE, ASSURANCE, REPRESENTATION OR CIRCUMSTANCE COMMUNICATED TO YOU THAT IS NOT CONTAINED IN THE ATTACHED AGREEMENT OR THIS FRANCHISE DISCLOSURE DOCUMENT IS UNAUTHORIZED BY COUNSELOR AND SHOULD NOT BE RELIED UPON BY YOU IN DECIDING WHETHER TO PURCHASE A COUNSELOR FRANCHISE.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, prospective franchisees are encouraged to seek independent legal and financial advice to fully understand the franchise opportunity. Specifically, Counselor Realty recommends that potential franchisees review the Franchise Disclosure Document, the Franchise Agreement, and other relevant information with legal counsel or a professional business advisor before entering into the agreement. This recommendation underscores the importance of thoroughly evaluating the terms, conditions, and potential risks and rewards associated with the Counselor Realty franchise.
Counselor Realty emphasizes that franchisees should consult their own business or legal advisor to gain a clear understanding of their legal rights under applicable laws and regulations. This proactive approach aims to ensure that franchisees make informed decisions and are fully aware of their obligations and rights. The FDD also explicitly states that any information, promise, assurance, representation, or circumstance communicated to the franchisee that is not contained within the Franchise Disclosure Document or the attached agreement is unauthorized and should not be relied upon.
In practical terms, this means that a prospective Counselor Realty franchisee should not only carefully read the FDD and all related documents but also engage professional advisors to interpret these documents and assess the overall viability of the franchise. By taking these steps, franchisees can mitigate potential risks and ensure they are entering into the agreement with a comprehensive understanding of what is expected of them and what they can expect from Counselor Realty. This aligns with standard franchise industry practices, where seeking professional advice is highly recommended due to the complexity and long-term nature of franchise agreements.