What is the significance of the 'State Effective Dates' section in the Counselor Realty Franchise Agreement?

According to the 2025 Counselor Realty Franchise Disclosure Document, the 'State Effective Dates' section is significant because it identifies states that have franchise laws requiring registration, filing, or exemption of the Franchise Disclosure Document (FDD). For a prospective Counselor Realty franchisee, this means that the franchisor has complied with state-specific regulations in those listed states. These regulations are in place to protect franchisees by ensuring they receive adequate information before investing in a franchise.

The FDD indicates that California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin have such franchise laws. Counselor Realty's FDD is considered effective and can be used in these states once it has been filed, registered, or deemed exempt from registration, as of the effective date stated in the document.

This section is important for potential franchisees because it confirms that Counselor Realty is operating legally and transparently in states with franchise-specific regulations. It also implies that the FDD contains all the necessary disclosures required by these states, which can help franchisees make informed decisions. If a prospective franchisee is located in one of these states, they should verify that the FDD is indeed registered, filed, or exempt before signing any agreements or making payments to Counselor Realty.