What section of the Counselor Realty Franchise Agreement addresses the death or disability of a Counselor Realty franchisee?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.3 Franchisee Death or Disability.
Your death, disability or incapacity (or of a principal officer, director or partner of Franchisee) is also a "transfer." Your executor, heir or legal representative (or the corporation or partnership, if an entity) must apply within 60 days of the death or incapacity for our consent to transfer this Agreement and satisfy the other conditions above.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 25–29)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, the death or disability of a franchisee is addressed in Section 9.3 of the Franchise Agreement. This section stipulates that the death, disability, or incapacity of the franchisee (or a principal officer, director, or partner, if the franchisee is an entity) is considered a "transfer" of the franchise.
In the event of such an occurrence, the franchisee's executor, heir, or legal representative (or the corporation or partnership, if applicable) must apply for Counselor Realty's consent to transfer the Franchise Agreement within 60 days of the death or incapacity. Furthermore, they must also satisfy all other conditions required for transferring the franchise, as outlined in the agreement.
This provision ensures that Counselor Realty maintains control over who operates a franchise, even in unforeseen circumstances like death or disability. It also places a responsibility on the franchisee's estate or representatives to act quickly and meet the necessary requirements to facilitate the transfer of the franchise, ensuring business continuity.