How is the Advertising Fee for the Regional Advertising Fund calculated for a Counselor Realty franchisee?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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We reserve the right to establish and organize a "Regional Advertising Group" if your Office (including any Additional Officer or Extension Office) is located outside the Twin Cities. If your Office (including any Additional Officer or Extension Office) is located outside the Twin Cities, you must be a member of the "Regional Advertising Group" (once established) and pay to the "Regional Advertising Fund" an Advertising Fee equal to $25 per agent per month for each agent operating out of the Office, Additional Office or Extension Office located in such geographical area. "Counselor" offices owned and operated by Counselor contribute toward the general costs of marketing activities conducted by Counselor under a different formula, and will not be required to pay the specific Advertising Fee described above to the Regional Advertising Fund. Activities of the Regional Advertising Group will be coordinated, and the Regional Advertising Fund will be administered by the Regional Advertising Committee, which will consist of one representative from each franchisee-owned "Counselor" office outside the Twin Cities, and three representatives of Counselor. The amount of monthly Advertising Fees for the Regional Advertising Group may be increased during the term of the franchise by a majority vote of that Regional Advertising Commit
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 17–21)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, franchisees located outside of the Twin Cities metropolitan area are required to participate in a Regional Advertising Group, if one is established. These franchisees must pay into the Regional Advertising Fund. The advertising fee is calculated at a rate of $25 per agent per month for each agent operating out of the franchisee's office, additional office, or extension office.
The Regional Advertising Group's activities are managed by a Regional Advertising Committee, which includes one representative from each franchisee-owned Counselor Realty office outside the Twin Cities, along with three representatives from Counselor Realty. This committee coordinates marketing activities and administers the Regional Advertising Fund.
It's important to note that while the initial advertising fee is set at $25 per agent per month, this amount can be increased during the franchise term. Any increase requires a majority vote by the Regional Advertising Committee, giving franchisees a voice in the advertising budget. Counselor Realty offices owned and operated directly by the company do not contribute to this fund under the same formula.