What recourse does a Counselor Realty franchisee have if Counselor Realty withholds consent for a transfer?

The 2025 Franchise Disclosure Document does not explicitly state what recourse a Counselor Realty franchisee has if Counselor Realty withholds consent for a transfer. However, the FDD does state conditions under which Counselor Realty may withhold consent. Counselor Realty may withhold consent if the franchisee does not pay all amounts owed to Counselor Realty or its affiliates or suppliers. Consent may also be withheld if the franchisee or transferee does not complete the required repairs, maintenance, or upgrades to the business's facilities, fixtures, equipment, and signage to meet the current system standards. Additionally, Counselor Realty may withhold consent if all shareholders or owners of the transferee do not execute the guaranty of the new agreement.

If Counselor Realty withholds consent for a transfer based on unmet conditions, the franchisee's recourse would likely involve addressing the specific issues that led to the denial. This could mean settling outstanding debts, completing necessary repairs or upgrades, or ensuring that all required parties execute the guaranty agreement. The franchise agreement outlines these conditions, and fulfilling them may be a prerequisite for obtaining consent.

Because the FDD does not explicitly detail further recourse beyond addressing the reasons for denial, a prospective franchisee should directly ask Counselor Realty about the specific procedures or options available if a transfer is denied. Understanding the appeal process or alternative dispute resolution methods could be crucial for franchisees planning to transfer their business in the future. This information would provide a clearer understanding of the franchisee's rights and options in such a situation.