What section of the Counselor Realty Franchise Agreement addresses the definition of 'transfer' by a Counselor Realty franchisee?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section(s) in Franchise or Other Agreement | Summary |
|---|---|---|
| j. Assignment of contract by franchisor | Section 9.4 | Counselor may transfer its interest in Franchise Agreement by notice to you |
| k. "Transfer" by franchisee -- definition | Section 9.1 | Includes transfer of your interest in Franchise Agreement, the Office, Business or Business assets, or an interest in your business entity or your owners |
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 definition of 'transfer' by a franchisee is addressed in Section 9.1 of the Franchise Agreement. This section specifies that a 'transfer' includes any change in ownership or control related to the franchisee's interest in the agreement, the physical office, the business assets, or any ownership interest in the franchisee's business entity.
Specifically, Section 9.1 states that franchisees must not directly or indirectly change or allow a change in the ownership or control of their interest in the Franchise Agreement, the Office, any Additional Office, any Extension Office or Business, a majority of the assets of the Office, any Additional Office, any Extension Office or Business, or if the Franchisee is an entity, any ownership interest in, or Control of, Franchisee or any direct or indirect owner of Franchisee without first offering Counselor Realty the right of first refusal.
This definition is important for prospective franchisees because it outlines the various scenarios that Counselor Realty considers a transfer of ownership or control, each of which requires adherence to specific procedures and may necessitate franchisor approval. Understanding this definition is crucial for franchisees planning any changes to their business structure or ownership, as failure to comply with these provisions could result in a breach of the Franchise Agreement.