What must a terminated Counselor Realty franchisee do with trade dress?
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 includes eliminating any similarity in design, structure, signage, trade dress, decor, color, or layout to the distinctive appearance of other Counselor Realty businesses. This obligation takes effect automatically when the agreement ends.
This requirement ensures that the terminated franchisee does not continue to benefit from Counselor Realty's brand recognition and image after the agreement ends. It protects the integrity of the Counselor Realty brand and prevents customer confusion. The franchisee is responsible for all costs associated with removing and altering the premises to comply with this requirement.
For a prospective Counselor Realty franchisee, this means understanding that significant expenses may be incurred at the end of the franchise term to de-identify the business location. It is essential to factor these potential costs into the overall financial planning for the franchise. Franchisees should also maintain detailed records of all changes made to the premises to ensure compliance with Counselor Realty's requirements upon termination or expiration of the agreement.