How must a Counselor Realty Business and Office be maintained?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
7.2 Best Efforts, Confidentiality and No Conflicts of Interest.
- (a) You or your Business manager must furnish your personal full time and attention and best efforts to the management and operation of your Business.
8. FINANCIAL STANDARDS.
- 8.1 Records and Reports. You must keep and give us the information, reports, books and records concerning the Office (including any Additional Office and Extension Office) and Business we specify, on forms or in media we specify periodically. You will allow us to inspect, copy and audit such records, both at the Office (including any Additional Office and Extension Office) and remotely by electronic means. If Franchisee is a partnership, corporation or other entity, you must provide us with copies of Franchisee's organizational documents (including, without limitation, as applicable, its articles of incorporation, bylaws, operating agreement or partnership agreement) and breakdown of ownership. You must report promptly to us any claim involving the Business and any change in the Franchisee's organizational documents.
- 8.2 Insurance. You must maintain types and levels of insurance coverage required by the state in which you operate your Business. You also must maintain other insurance required by law, and by your Office (including any Additional Office and Extension Office) lease or mortgage, and errors and omissions insurance coverage. You must maintain general liability insurance on an occurrence basis with a minimum limit of at least $1,000,000 per occurrence and $2,000,000 in the aggregate, and errors and omission insurance with a minimum limit of at least $1,000,000. Insurance shall be with insurers and on forms acceptable to us, shall name Counselor as an additional insured, and waive subrogation. If we buy such insurance because you fail to do so (which we may, but are not required to, do) you will reimburse us immediately upon request.
- (c) If Counselor has consented to any Extension Office locations, you must maintain the mutually agreed-upon minimum number of sales agents operating from such Extension Office.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, maintaining a Counselor Realty Business and Office involves several key requirements. Franchisees must furnish their personal full time and attention and best efforts to the management and operation of their Business. Franchisees must also keep and provide Counselor Realty with specified information, reports, books, and records concerning the Office, including any Additional Office and Extension Office. These records must be provided on specified forms or media periodically, and franchisees must allow Counselor Realty to inspect, copy, and audit such records both at the Office and remotely by electronic means.
In addition to operational and reporting requirements, franchisees must maintain certain financial standards. This includes maintaining the types and levels of insurance coverage required by the state in which they operate their Business, as well as other insurance required by law and by their Office lease or mortgage. Specifically, franchisees must maintain general liability insurance on an occurrence basis with a minimum limit of at least $1,000,000 per occurrence and $2,000,000 in the aggregate, and errors and omission insurance with a minimum limit of at least $1,000,000.
Furthermore, if Counselor Realty has consented to any Extension Office locations, franchisees must maintain the mutually agreed-upon minimum number of sales agents operating from such Extension Office, with at least one of these sales agents being a supervising broker. Failure to maintain the minimum required number of agents in the Extension Office may result in Counselor Realty requiring the franchisee to close the Extension Office or even terminate the Franchise Agreement. These stipulations ensure that franchisees meet Counselor Realty's standards for business operation, financial stability, and brand representation.