Is there any disclosure in Item 4 regarding bankruptcy proceedings involving Counselor Realty?

According to the 2025 FDD, Item 4 addresses bankruptcy and states that neither Counselor Realty Franchising, Inc. (Counselor), nor any individuals previously identified in Item 1 or 2 of the Franchise Disclosure Document, have been involved as a debtor in bankruptcy proceedings that require disclosure under U.S. Bankruptcy Code. This means that, to the best of Counselor Realty's knowledge, the company and its key personnel have not been involved in any bankruptcy proceedings that would be relevant to potential franchisees.

For a prospective franchisee, this disclosure is reassuring as it indicates a stable financial history for Counselor Realty and its leadership. Bankruptcy filings can be a red flag, suggesting financial instability or mismanagement, so the absence of such disclosures is a positive sign.

However, it is important to note that this statement only covers the specific individuals and entities mentioned in Items 1 and 2. A potential franchisee may still want to independently verify this information through their own due diligence, as well as monitor the company's financial health on an ongoing basis.