What condition must a Counselor Realty franchisee meet to be eligible for a successor franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2 Successor Franchise. If you apply in writing between 60 and 180 days before expiration of the initial term and are not in breach of this Agreement (or any related agreement) at the expiration of the initial term, you may acquire a single successor franchise for five years, using the form of Counselor Franchise Agreement we are then using (which may differ from this Agreement), but without further renewal. Your Franchise Agreement for the successor term, if any, will include a new minimum Office sales agent requirement schedule negotiated by you and Counselor. Upon renewal of your franchise and during the successor term, if any, (i) your Territory may be altered if the population in your Territory has increased to exceed the maximum population then allowed by Counselor for a single franchise territory or if you failed to maintain the minimum number of agents during the prior term, and (ii) you must pay all fees in the amount then being charged by Counselor for new franchises. You also must first complete reasonable upgrading and refurbishment of your Office (including any Additional Offices and Extension Offices, if applicable) to then-current System standards.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, a franchisee can acquire a successor franchise if they meet certain conditions. The franchisee must apply in writing between 60 and 180 days before the expiration of the initial franchise term. Crucially, the franchisee must not be in breach of the existing Franchise Agreement or any related agreements at the time the initial term expires.
If these conditions are met, the franchisee may be granted a single successor franchise for an additional five years. This successor franchise will utilize the then-current form of the Counselor Realty Franchise Agreement, which may differ from the original agreement. It's important to note that this successor franchise does not include any further renewal options beyond the five-year term.
The terms of the successor franchise agreement will include a newly negotiated minimum sales agent requirement for the office. Additionally, upon renewal and during the successor term, Counselor Realty may alter the franchisee's territory if the population has increased beyond the maximum allowed for a single franchise or if the franchisee failed to maintain the minimum number of agents during the prior term. The franchisee will also be required to pay all fees then being charged by Counselor Realty for new franchises and complete reasonable upgrades and refurbishment of the office to meet the current system standards.
In summary, maintaining compliance with the existing agreement and meeting the application deadline are critical for a Counselor Realty franchisee seeking a successor franchise. The successor agreement may have different terms and conditions, including revised territory and fee structures, so franchisees should carefully review the new agreement before committing to the additional term.