What standards must a Counselor Realty franchisee renovate to during a transfer?
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 |
| l. Franchisor approval of transfer by franchisee | Section 9.1 | Counselor has the right to consent to all transfers (other than a transfer of less than a majority interest in your business entity or your owners) and will consent if Counselor deems transferee qualified and conditions specified in Franchise Agreement are satisfied |
| m. Conditions for franchisor approval of transfer | Sections 9.1, 9.2 | Transferee qualifies; payment of transfer fee; payment of all amounts owing; renovation to then-current System standards; execution of guaranty by buyer's shareholders or owners |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 25–29)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, a franchisee looking to transfer their franchise must renovate to the then-current System standards. This requirement is one of the conditions that Counselor Realty specifies for approving a transfer. Other conditions include ensuring the transferee is qualified, payment of a transfer fee, and payment of all outstanding amounts owed to Counselor Realty. The specific standards that the franchisee must renovate to are not defined in this section.
This means that if a Counselor Realty franchisee decides to sell their franchise, they will likely need to invest in upgrades or changes to bring the office up to the latest brand standards. These standards could involve anything from office layout and decor to technology and equipment. The cost of these renovations would be the responsibility of the selling franchisee, potentially impacting the profitability of the sale.
Prospective franchisees should be aware of this requirement, as it could represent a significant expense when they eventually decide to sell their franchise. It would be prudent to inquire with Counselor Realty about the typical scope and cost of these renovations to better understand the potential financial implications. Understanding these costs ahead of time can help a franchisee plan for the future and make informed decisions about their investment in the Counselor Realty franchise.