Can Counselor Realty alter a franchisee's territory during the successor term?

According to Counselor Realty's 2025 Franchise Disclosure Document, the company may alter a franchisee's territory upon renewal of the franchise and during any successor term. This can occur if the population in the franchisee's territory has increased beyond the maximum population allowed for a single franchise territory, or if the franchisee failed to maintain the minimum required number of agents during the prior term.

This policy has significant implications for prospective franchisees. It means that the territory granted initially is not guaranteed to remain the same throughout the entire duration of the franchise relationship, including any renewal periods. A franchisee's territory could be reduced if the population grows significantly, potentially leading to increased competition within a smaller area.

Furthermore, the requirement to maintain a minimum number of agents is critical. Failure to do so not only risks the alteration of the territory but also potentially jeopardizes the franchise agreement itself. This creates an ongoing performance pressure on the franchisee to actively manage and grow their team of agents.

It is important for potential franchisees to understand the demographic trends in their designated territory and to develop strategies for maintaining the required number of agents to avoid territory adjustments by Counselor Realty.