Does the transfer fee apply to all transfers of a Counselor Realty franchise?

According to Counselor Realty's 2025 Franchise Disclosure Document, a transfer fee of $2,000 applies to all franchise transfers, with a specific exception. The transfer fee requirement does not apply to transfers described in the second to last sentence of Section 9.1 of the franchise agreement, provided those transfers are conducted in accordance with that section.

Section 9.1 outlines that Counselor Realty's consent and right of first refusal are not required for certain ownership interest transfers within the franchisee entity, as long as the transfer does not result in a change of control. To qualify for this exception, the franchisee must provide Counselor Realty with written notice at least 30 days before the transfer, including details about the transfer and transferee. Additionally, 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.

In practical terms, a Counselor Realty franchisee looking to transfer their franchise should be aware of the $2,000 transfer fee. However, they should also carefully review Section 9.1 of the franchise agreement to determine if their specific transfer qualifies for an exception, potentially avoiding the fee. It is important to provide timely and complete notice to Counselor Realty and ensure all necessary documentation, such as the guaranty, is properly executed to take advantage of any applicable exceptions.