What is the transfer fee that a Counselor Realty franchisee must pay for a transfer?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Provision | Section(s) in Franchise or Other Agreement | Summary |
|---|---|---|
| j. Assignment of contract by franchisor | Section 9.4 | Counselor may transfer its interest in Franchise Agreement by notice to you |
| k. "Transfer" by franchisee -- definition | Section 9.1 | Includes transfer of your interest in Franchise Agreement, the Office, Business or Business assets, or an interest in your business entity or your owners |
| l. Franchisor approval of transfer by franchisee | Section 9.1 | Counselor has the right to consent to all transfers (other than a transfer of less than a majority interest in your business entity or your owners) and will consent if Counselor deems transferee qualified and conditions specified in Franchise Agreement are satisfied |
| m. Conditions for franchisor approval of transfer | Sections 9.1, 9.2 | Transferee qualifies; payment of transfer fee; payment of all amounts owing; renovation to then-current System standards; execution of guaranty by buyer's shareholders or owners |
| n. Franchisor's right of | Section 9.6 | Counselor has the right of first |
| first refusal to acquire | refusal to match any offer for your | |
| franchisee's business | Business | |
| o. Franchisor's option to | Not applicable | Not applicable |
| purchase franchisee's | ||
| business | ||
| p. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 25–29)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, a franchisee must pay a transfer fee if they transfer their interest in the Franchise Agreement, the Office, Business or Business assets, or an interest in their business entity or their owners. Counselor Realty has the right to consent to all transfers (other than a transfer of less than a majority interest in your business entity or your owners) and will consent if Counselor Realty deems the transferee qualified and the conditions specified in the Franchise Agreement are satisfied.
The conditions for Counselor Realty's approval of a transfer include ensuring the transferee is qualified, payment of the transfer fee, payment of all outstanding amounts owed to Counselor Realty, renovating the premises to meet the then-current System standards, and obtaining a guaranty from the buyer's shareholders or owners. Counselor Realty also retains the right of first refusal to match any offer for the franchisee's business.
If a franchisee dies or becomes disabled, their executor, heir, successor, or legal representative must apply for Counselor Realty's consent to transfer the franchise within 60 days of the death or incapacity. They must also comply with all other transfer provisions outlined in the Franchise Agreement. These provisions ensure that Counselor Realty maintains control over who operates a franchise and that the brand standards are upheld even in the event of a transfer.