Can Counselor Realty sue to protect its rights in the Marks?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
10. RESOLUTION OF DISPUTES.
- 10.1 Arbitration. Except as provided below, any dispute arising under or in relation to this Agreement shall be resolved by binding arbitration by the National Center for Dispute Settlement, under its rules for expedited commercial arbitration, in Minneapolis, Minnesota. Each claim or controversy will be arbitrated by Franchisee on an individual basis, and will not be consolidated in any arbitration action with the claim of any other franchisee. The award of the arbitrators is final and binding on all parties. The arbitrators may issue appropriate orders as well as award monetary (but not exemplary or punitive) damages. The prevailing party will be entitled to recover its costs including its reasonable attorneys' fees. We may sue to collect money owed to us, to protect or enforce our rights in the Marks, or to compel inspections or audits.
- 10.2 Injunctive Relief. Your breach of this Agreement could cause irreparable damage to Counselor or to other franchisees. Therefore, upon a breach or threatened breach of any of the terms of this Agreement, we are entitled to an immediate injunction restraining such breach and/or a decree of specific performance, pending arbitration or adjudication, without bond, or having to show or prove any actual damage, and without regard to the availability of an adequate remedy at law.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, Counselor Realty can sue to protect or enforce its rights in the Marks. Additionally, Counselor Realty can seek an immediate injunction restraining a breach or threatened breach of the Franchise Agreement, without needing to post a bond or prove actual damage. This underscores the importance of franchisees adhering to the terms of the agreement to avoid potential legal action.
This ability to pursue legal action is further supported by the acknowledgment in the franchise agreement that the Marks are the exclusive and valuable property of Counselor Realty. Franchisees only have a qualified license to use the marks in strict accordance with the agreement. This reinforces Counselor Realty's right to protect its brand identity and prevent unauthorized use of its trademarks.
Furthermore, disputes arising from the Franchise Agreement are generally resolved through binding arbitration in Minneapolis, Minnesota. However, the clause allowing Counselor Realty to sue for the protection of its Marks provides an exception to this arbitration requirement, highlighting the critical importance Counselor Realty places on safeguarding its brand and intellectual property.