What are the specific requirements for the 'complete application' that must be submitted to Counselor Realty for a transfer?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
entity, by contract or otherwise.
- 9.2 Other Conditions to Transfer. You must apply for our consent by submitting written notice of the pending transfer, with a complete application, signed by you and by the proposed transferee, and payment of the transfer fee, at least 60 days before the proposed transfer date. The transfer fee is $2,000 and applies to all transfers (excluding transfers described in, and in accordance with, the second to last sentence of Section 9.1). We may specifically withhold consent if: (i) you do not pay all amounts you owe to Counselor or its affiliates or to your suppliers; (ii) you (or the transferee) do not complete the repair, maintenance or upgrade of the Business' facility, fixtures, equipment, and signage to then-current System standards; or (iii) all shareholders or owners of the transferee do not execute the guaranty of the new Agreement.
- 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 cons
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, a franchisee seeking to transfer their franchise must submit a written notice of the pending transfer, a complete application signed by both the franchisee and the proposed transferee, and payment of a transfer fee at least 60 days before the intended transfer date. The transfer fee is $2,000 and applies to all transfers, with specific exceptions as described in Section 9.1 of the franchise agreement.
Counselor Realty may withhold consent for the transfer if the franchisee has outstanding debts to Counselor Realty or its affiliates, or to their suppliers. Consent may also be withheld if the franchisee or transferee fails to complete necessary repairs, maintenance, or upgrades to the business's facilities, fixtures, equipment, and signage to meet the current system standards. Additionally, all shareholders or owners of the transferee must execute a guaranty of the new franchise agreement.
In the event of the death, disability, or incapacity of the franchisee (or a principal officer, director, or partner), the executor, heir, or legal representative must apply for consent to transfer the agreement within 60 days of the event, fulfilling the conditions mentioned above. This ensures that any transfer of the Counselor Realty franchise adheres to the standards and requirements set by the company, maintaining consistency and quality across all franchise locations.
Prospective franchisees should note the importance of understanding all financial obligations and system standards to ensure a smooth transfer process. It is also crucial to have potential transferees prepared to meet all requirements, including executing the guaranty of the new agreement, to avoid any delays or denial of the transfer.