What is the condition regarding Counselor Realty's consent to any Extension Office location?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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You may apply to open one or more additional offices outside of your designated Territory (an "Extension Office") by submitting a request to Counselor describing the location of such proposed Extension Office as well as any additional information Counselor may require or request, along with a one-time fee of $750 for each Extension Office location (the "Extension Office Application Materials"). After Counselor's receipt of such Extension Office Application Materials (including the one-time fee), Counselor will have 30 days to review the Extension Office Application Materials and proposed Extension Office location and notify you whether or not Counselor consents to your opening of such Extension Office location. Counselor's consent to any Extension Office location will be contingent on you and Counselor reaching a mutual agreement as to the minimum number of sales agents that will operate from the Extension Office. Any Extension Office we consent to must comply with all requirements of the Franchise Agreement and then-current System standards.
Before you sign the Franchise Agreement, you and Counselor will negotiate a schedule for the minimum number of real estate sales agents who must operate from your Office. If you fail to satisfy the agreed-upon schedule, or to maintain the minimum required number of agents in the Office on an ongoing basis, you may lose the exclusive right to operate a "Counselor" office in the Territory, your Territory may be altered (as determined by Counselor in its sole discretion), or Counselor may terminate the Franchise Agreement. See below and Item 17.
You will not receive an exclusive territory. You may face competition from other franchisees or Franchisor-owned outlets, or from other channels of distribution. During the term of the Franchise Agreement, Counselor will not itself establish or operate a "Counselor" office, or license another to establish or operate a "Counselor" office within the Territory. However, both Counselor and other "Counselor" franchisees are free to enter into, and to provide residential and commercial real estate brokerage services within, your Territory, and you are free to provide real estate brokerage services in territories in which other franchisees' "Counselor" offices are located.
Source: Item 12 — TERRITORY (FDD pages 21–23)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, Counselor Realty's consent to an Extension Office location is contingent upon reaching a mutual agreement with the franchisee regarding the minimum number of sales agents that will operate from that Extension Office. The franchisee must submit a request to Counselor Realty describing the location of the proposed Extension Office, along with any additional information Counselor Realty may require, and a one-time fee of $750 for each Extension Office location.
After Counselor Realty receives the Extension Office Application Materials, including the $750 fee, they have 30 days to review the application and proposed location. They will then notify the franchisee whether or not they consent to the opening of the Extension Office. Any Extension Office that Counselor Realty consents to must comply with all requirements of the Franchise Agreement and the then-current System standards.
It's important to note that if Counselor Realty has consented to any Extension Office locations, the franchisee must maintain the mutually agreed-upon minimum number of sales agents operating from the Extension Office. Additionally, sales agents operating from any Additional Office locations will be counted as part of the number of sales agents operating from the franchisee's main Office for purposes of Section 1.3(a) of the Franchise Agreement. If the franchisee fails to satisfy and maintain the minimum required number of sales agents in the Extension Office on an ongoing basis, Counselor Realty may elect to have the franchisee close the Extension Office or terminate the Franchise Agreement.