On what terms must Counselor Realty's acceptance of a Counselor Realty franchisee's offer be based?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
er of an ownership interest in Franchisee or any owner of Franchisee. We will consent to a transfer if the conditions specified in this Agreement in our opinion are satisfied and the transferee in our opinion is qualified to operate the Business in compliance with that Agreement. Notwithstanding anything contained herein to the contrary, Counselor's consent will not be required for, and the right of first refusal set forth in Section 9.6 will not apply to, a transfer described in clause (iv) of the first sentence of this Section 9.1 if (x) such transfer (in a single transaction or series of related transactions) will not result in a change in Control of Franchisee or such direct or indirect owner of Franchisee, (y) you provide Counselor with written notice of such transfer, together with such other information concerning such transfer and transferee as we may require, at least thirty (30) days prior to the consummation of such transfer, and (z) if such transfer is a transfer of an ownership interest in Franchisee, such transferee executes the guaranty attached to this Agreement and delivers such guaranty to Counselor within ten (10) days of such transfer. For purposes of this Article 9, "Control" means, with respect to the applicable person or entity, ownership or control, directly or indirectly, of a majority of the voting ownership of such person or entity or the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such person or entity, by contract or otherwise.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, Counselor Realty will consent to a transfer of franchise ownership if the conditions specified in the Franchise Agreement are satisfied and the transferee is, in Counselor Realty's opinion, qualified to operate the business in compliance with the agreement.
Specifically, the franchisee and their transferee must follow the procedures outlined in Section 9.2 of the agreement. The transferee is required to sign the then-current form of the Counselor Realty Franchise Agreement for the unexpired term, unless the franchisee is an entity and the transfer involves an ownership interest in the franchisee or any owner of the franchisee.
However, Counselor Realty's consent is not required for certain transfers, and the right of first refusal does not apply if the transfer does not result in a change of control of the franchisee. In these cases, the franchisee must provide Counselor Realty with written notice at least 30 days prior to the transfer, along with any other required information. If the transfer involves an ownership interest in the franchisee, the transferee must execute and deliver a guaranty to Counselor Realty within 10 days of the transfer.