factual

To whom must a terminated Counselor Realty franchisee pay all sums due?

Counselor_Realty Franchise · 2025 FDD

Answer 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,

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, a franchisee must pay all sums due to Counselor Realty or its affiliates, or which Counselor Realty has guaranteed. This obligation is triggered automatically when the agreement ends, whether through termination by Counselor Realty or expiration of the agreed-upon term.

This means that a franchisee's financial obligations to Counselor Realty do not simply disappear upon the end of the franchise relationship. Any outstanding fees, royalties, or other debts owed to Counselor Realty or its affiliated entities must be settled. This could include unpaid advertising fees, website fees, training fees, or any other charges incurred during the term of the agreement.

It is important for prospective franchisees to understand that these financial obligations survive the termination of the franchise agreement. Franchisees should maintain meticulous records of all payments and outstanding balances to ensure a smooth exit from the Counselor Realty system and avoid potential legal disputes over unpaid sums. Furthermore, franchisees should carefully review the franchise agreement to fully understand all potential financial obligations that may arise upon termination or expiration.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.