According to the 2025 Counselor Realty Franchise Disclosure Document, Item 4 addresses bankruptcy. It states that neither Counselor Realty nor any individuals previously identified in Items 1 or 2 of the FDD have been involved as a debtor in proceedings under the U.S. Bankruptcy Code that would require disclosure.

This information is significant for prospective franchisees because it provides insight into the financial stability and history of Counselor Realty and its key personnel. A history of bankruptcy could raise concerns about the franchisor's ability to support its franchisees and maintain the brand's reputation. The absence of such a history, as indicated in Item 4, can be seen as a positive sign.

It is important to note that this statement only covers the bankruptcy history of Counselor Realty and related individuals up to the date of the FDD. It does not guarantee future financial stability. Prospective franchisees should still conduct their own due diligence, including reviewing Counselor Realty's financial statements (Item 21) and seeking professional financial advice, to assess the overall risk of investing in a Counselor Realty franchise.