After termination or expiration of the Counselor Realty Franchise Agreement, can Counselor Realty access and remove confidential information from the Office?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) return the Franchise Policy Guidelines and all other confidential or trade secret information to us, and stop using distinctive, proprietary or confidential items, methods or other techniques, systems or know-how we disclosed to you. Counselor or its affiliate may access and remove any confidential or proprietary information and materials, either at the Office (including any Additional Office and Extension Office) or remotely by electronic means ; and
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, Counselor Realty has the right to access and remove confidential or proprietary information and materials from the franchisee's office. This includes the primary office, any additional offices, and any extension offices. Counselor Realty can perform this removal either physically at the office location or remotely through electronic means.
This provision ensures that Counselor Realty maintains control over its confidential and proprietary information even after a franchise agreement ends. This is a fairly standard practice in franchising, as franchisors need to protect their trade secrets and operational methods.
For a prospective Counselor Realty franchisee, this means that at the end of the franchise term or upon early termination, they must be prepared to relinquish all confidential information back to Counselor Realty. This includes physical documents as well as electronic data. The franchisee should ensure they have their own copies of any non-confidential business records they wish to retain, as Counselor Realty is entitled to remove its proprietary information.
It is important for franchisees to understand the scope of what Counselor Realty considers confidential information and to have a plan for transitioning their business operations in the event of termination or expiration. This may involve setting up new systems and processes that do not rely on Counselor Realty's proprietary information.