What section and article of the Counselor Realty Franchise Agreement address post-termination obligations?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Termination or expiration of this Agreement does not abrogate posttermination obligations of a party, including without limitation the obligations set forth in Sections 7.2(b) and (d).
12. TERMINATION CONSEQUENCES.
Upon termination or expiration of this Agreement, all rights licensed herein, and your interest herein, revert to Counselor automatically, and you must immediately:
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 16–17)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, Section 11(c) of the Franchise Agreement states that termination or expiration of the agreement does not eliminate the post-termination obligations of either party. These obligations specifically include those detailed in Sections 7.2(b) and (d). This means that even after the franchise agreement ends, certain responsibilities and restrictions remain in effect for both Counselor Realty and the franchisee.
Section 7.2(b) addresses confidentiality. It states that during and after the term of the Franchise Agreement, the franchisee cannot disclose or use any confidential or proprietary information or trade secrets belonging to Counselor Realty, except to operate the business during the agreement's term. The franchisee must also ensure that their business manager and agents sign a confidentiality agreement. Upon termination or expiration, the franchisee must promptly return the entire Franchise Policy Guidelines to Counselor Realty.
In practical terms, this means a former Counselor Realty franchisee is legally bound to protect Counselor Realty's sensitive business information and cannot use it to compete against them. The franchisee must also ensure that anyone who had access to this information during the franchise term is also bound by confidentiality. Failing to comply with these post-termination obligations could result in legal action from Counselor Realty.