Is Counselor Realty allowed to conduct residential real estate brokerage businesses?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
Both Counselor and other "Counselor" licensees may provide residential and commercial real estate brokerage services anywhere near such
Extension Office. In addition, Counselor may itself establish or operate a "Counselor" office, or license another to establish or operate a "Counselor" office, anywhere near such Extension Office; provided, however, that if Counselor proposes to license another to establish or operate a "Counselor Office" with a territory that would include the location where such Extension Office is located (a "Territory Opportunity"), we will provide you with a right of first refusal for such Territory Opportunity on the following terms:
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, Counselor Realty and its licensees can provide residential real estate brokerage services. Specifically, this ability extends to areas near an Extension Office operated by a franchisee. This means that even if a franchisee establishes an Extension Office, Counselor Realty retains the right to offer residential real estate services in the same vicinity.
This condition has implications for prospective franchisees, particularly those considering establishing Extension Offices. While franchisees can expand their reach through Extension Offices, they should be aware that Counselor Realty does not offer territorial protections for these locations. The franchisor and other franchisees can compete in the same area, potentially impacting the Extension Office's market share and profitability.
This lack of territorial protection is a critical factor for franchisees to consider when evaluating the potential of an Extension Office. It is essential to assess the competitive landscape and potential market saturation before investing in such an expansion. The franchisee bears the risk of direct competition from Counselor Realty and other franchisees in the same area where the Extension Office is located.