What is the timeframe for applying for Counselor Realty's consent before a proposed franchise transfer?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
entity, by contract or otherwise.
- 9.2 Other Conditions to Transfer. You must apply for our consent by submitting written notice of the pending transfer, with a complete application, signed by you and by the proposed transferee, and payment of the transfer fee, at least 60 days before the proposed transfer date. The transfer fee is $2,000 and applies to all transfers (excluding transfers described in, and in accordance with, the second to last sentence of Section 9.1). We may specifically withhold consent if: (i) you do not pay all amounts you owe to Counselor or its affiliates or to your suppliers; (ii) you (or the transferee) do not complete the repair, maintenance or upgrade of the Business' facility, fixtures, equipment, and signage to then-current System standards; or (iii) all shareholders or owne
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, a franchisee must apply for consent to transfer their franchise at least 60 days before the proposed transfer date. This application must be submitted in writing and include a complete application signed by both the current franchisee and the proposed transferee. Additionally, the franchisee must pay a transfer fee of $2,000 at the time of application. This fee applies to all transfers unless the transfer meets specific conditions outlined in Section 9.1 of the franchise agreement.
This requirement allows Counselor Realty to adequately assess the proposed transfer and the qualifications of the potential transferee. Counselor Realty may withhold consent if the franchisee has outstanding debts to Counselor Realty or its affiliates, if the facilities are not up to system standards, or if all owners of the transferee do not execute a guaranty of the new agreement.
For a prospective Counselor Realty franchisee, this means planning well in advance if they anticipate selling their franchise. Failing to apply within the 60-day window could delay or even prevent the transfer. The $2,000 transfer fee should also be factored into the financial considerations of selling the franchise. It is important to note the exceptions to the transfer fee mentioned in Section 9.1, which should be reviewed carefully to determine if they apply to a specific transfer situation.