What section of the Counselor Realty franchise agreement outlines the consequences of termination?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
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:
- (a) stop using the Marks and System, any materials containing or depicting the Marks or System, and any other name or mark confusingly similar to the Marks, including domain names;
- (b) pay all sums due to Counselor or its affiliates or which we have guaranteed;
- (c) return the Franchise Policy Guidelines and all other confidential or trade secret information to us, and stop using distinctive, proprietary or confidential items, methods or other techniques, systems or know-how we disclosed to you. Counselor or its affiliate may access and remove any confidential or proprietary information and materials, either at the Office (including any Additional Office and Extension Office) or remotely by electronic means ; and
- (d) remove all distinctive inventory, trade dress, and leasehold improvements to eliminate any similarity in design, structure, signage, trade dress, decor, color or layout to the distinctive appearance of other Counselor businesses.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, section 12 of Item 22, titled "Termination Consequences," details what happens when the franchise agreement ends. Upon termination or expiration of the agreement, all licensed rights and the franchisee's interest automatically revert to Counselor Realty.
Specifically, the franchisee must immediately cease using Counselor Realty's marks and systems, including any confusingly similar names or domain names. They must also pay all outstanding sums owed to Counselor Realty or its affiliates, including any debts the franchisor has guaranteed. The franchisee is obligated to return the Franchise Policy Guidelines and all other confidential or trade secret information, and discontinue using any distinctive, proprietary, or confidential items disclosed by Counselor Realty. Counselor Realty or its affiliate has the right to access and remove confidential or proprietary information and materials from the office, including any additional or extension offices, either physically or electronically.
Furthermore, the franchisee must remove all distinctive inventory, trade dress, and leasehold improvements to eliminate any similarity to the distinctive appearance of other Counselor Realty businesses. This includes design, structure, signage, trade dress, decor, color, and layout. These post-termination obligations are standard in franchise agreements to protect the brand and ensure a smooth transition.