Can Counselor Realty transfer its interest in the Franchise Agreement?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
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, Counselor Realty can transfer its interest in the Franchise Agreement by providing notice to the franchisee. This means that Counselor Realty, as the franchisor, has the right to assign the Franchise Agreement to another party.
For a prospective franchisee, this clause indicates that the relationship with Counselor Realty could change if the franchise agreement is transferred to a new entity. The new entity would then assume the rights and responsibilities of the franchisor.
While the FDD states that Counselor Realty can transfer its interest with notice, it does not specify whether the franchisee's consent is required or what recourse the franchisee has if they object to the transfer. It is important for a prospective franchisee to understand the circumstances under which Counselor Realty might transfer the agreement and what protections the franchisee has in such a scenario.