Are there any exceptions to the rule that the Counselor Realty Franchise Agreement cannot be modified?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section(s) in Franchise or Other Agreement | Summary contractors of Counselor or any of Counselor's franchisees | |
|---|---|---|---|
| r. | Non-competition covenants after the franchise is terminated or expires | 7.2 | No solicitation of agents, employees or independent contractors of Counselor or any of Counselor's franchisees for 24- months post-termination |
| s. | Modification of the agreement | Section 13.2 | No modifications generally but Franchise Policy Guidelines and licensed Marks subject to change by Counselor |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 25–29)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, the Franchise Agreement generally cannot be modified. However, there are exceptions to this rule. Counselor Realty retains the right to unilaterally change the Franchise Policy Guidelines and licensed Marks. This means that while the core agreement remains fixed, certain operational and branding aspects are subject to change by Counselor Realty during the term of the franchise agreement.
For a prospective franchisee, this is important because it highlights that while the legal terms of the agreement are stable, the way the business is run and branded can evolve. Franchisees must stay updated with any changes to the Franchise Policy Guidelines and adapt their business practices accordingly. This flexibility on the part of the franchisor allows Counselor Realty to maintain brand consistency and adapt to market changes, but it also places a responsibility on the franchisee to remain compliant with the latest standards.
This is a fairly common practice in franchising, where franchisors need the ability to update their systems and standards to stay competitive. However, it's crucial for franchisees to understand the scope of these potential changes and how they might impact their business. Franchisees should inquire about the process for implementing changes, how much advance notice they will receive, and what support Counselor Realty will provide to help them adapt to new requirements. Understanding the frequency and potential costs associated with these changes is essential for budgeting and long-term planning.
In summary, while the Counselor Realty Franchise Agreement itself is generally not subject to modification, franchisees must be aware that the Franchise Policy Guidelines and licensed Marks can be changed by Counselor Realty. This necessitates a commitment to ongoing adaptation and compliance with the franchisor's evolving standards.