To whom must sums be paid following termination or expiration of a Counselor Realty franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
set forth in Sections 7.2(b) and (d).
12. TERMINATION CONSEQUENCES.
Upon termination or expiration of this Agreement, all rights licensed herein, and your interest herein, revert to Counselor automatically, and you must immediately:
- (a) stop using the Marks and Sys
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee is required to pay all outstanding sums to Counselor Realty or its affiliates, or to entities for which Counselor Realty has provided a guarantee. This obligation arises automatically when the agreement ends, signaling the reversion of all licensed rights and interests back to Counselor Realty.
This requirement ensures that Counselor Realty and its related entities receive all due payments before the franchisee ceases operations. It covers any financial obligations the franchisee may have incurred during the term of the agreement, providing financial protection for Counselor Realty.
For a prospective Counselor Realty franchisee, this means understanding and planning for the financial implications of termination or expiration. It's crucial to maintain accurate records of all payments and obligations to ensure a smooth transition and avoid potential disputes. Franchisees should also clarify with Counselor Realty any uncertainties regarding outstanding sums to prevent unexpected financial burdens upon termination or expiration of the agreement.