What must a terminated Counselor Realty franchisee do with leasehold improvements?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
hout limitation the obligations 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 System, any materials containing or depicting the Marks or System, and any other name or mark confusingly similar to the Marks, including domain names;
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 must immediately remove all distinctive inventory, trade dress, and leasehold improvements. This removal must eliminate any similarity in design, structure, signage, trade dress, decor, color, or layout to the distinctive appearance of other Counselor Realty businesses. This requirement applies to the franchisee's primary office, any additional offices, and any extension offices.
This provision ensures that a terminated franchisee does not continue to benefit from Counselor Realty's brand recognition and image after the agreement ends. It prevents customer confusion and protects the integrity of the Counselor Realty brand. The franchisee bears the cost and responsibility for removing these items and restoring the premises to a neutral state.
For a prospective Counselor Realty franchisee, this means that any investment in leasehold improvements during the franchise term may not be recoverable upon termination. It is crucial to understand the potential costs associated with removing these improvements and to factor them into the overall financial planning for the franchise. Franchisees should carefully consider the terms of the lease agreement and negotiate clauses that allow for the removal of improvements at the end of the lease term, or in the event of early termination, to mitigate potential financial losses.