What is the condition that triggers the requirement to pay the higher Advertising Fee for Counselor Realty?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
your Office for purposes of this Section 5.3.
- 5.4 Advertising Fees. If your Office (or any Additional Office or Extension Office) is located within the 11-county metropolitan area of the Twin Cities of Minneapolis and St. Paul, Minnesota (including the Counties of Scott, Wright, Isanti, Dakota, Anoka, Hennepin, Washington, Carver, Ramsey, Sherburne and Chisago), you must pay to Counselor an Advertising Fee equal to $60 per agent per month for each agent operating out of the Office, Additional Office or Extension Office located in such metropolitan area, as a contribution towards the general costs of marketing activities conducted by Counselor. The amount of this Advertising Fee may be increased during the term of this Agreement by Counselor from time to time in its sole discretion. We reserve the right to establish and organize a "Regional Advertising Group" if your Office (or any Additional Office or Extension Office) is located outside the Twin Cities. If your Office (or any Additional Office or Extension Office) is located outside the Twin Cities, you must be a member of the "Regional Advertising Group" (once established) and pay to the "Regional Advertising Fund" an Advertising Fee equal to $25 per agent per month for each agent operating out of the Office, Additional Office or Extension Office located in such geographical area. The amount of your Advertising Fees for the Regional Advertising Group may be increased during the term of this Agreement by a majority vote of the "Regiona
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the location of the franchise office determines the amount of the advertising fee. If the Counselor Realty office, including any Additional or Extension Offices, is situated within the 11-county metropolitan area of the Twin Cities of Minneapolis and St. Paul, Minnesota, the franchisee must pay a higher advertising fee. This area includes the counties of Scott, Wright, Isanti, Dakota, Anoka, Hennepin, Washington, Carver, Ramsey, Sherburne, and Chisago.
For offices within this Twin Cities metropolitan area, the advertising fee is $60 per agent per month for each agent operating out of the office. This fee contributes to the general marketing activities conducted by Counselor Realty. The FDD stipulates that Counselor Realty has the right to increase this advertising fee during the term of the agreement at its discretion.
In contrast, if the Counselor Realty office is located outside the Twin Cities metropolitan area, the franchisee must participate in a Regional Advertising Group (if established) and contribute to the Regional Advertising Fund. The advertising fee for these offices is $25 per agent per month. This amount may be increased by a majority vote of the Regional Advertising Committee that manages the Regional Advertising Group. Therefore, the higher advertising fee of $60 per agent applies specifically to offices located within the specified 11-county Twin Cities area, while a lower fee applies to offices outside this area, highlighting the importance of location in determining advertising costs for Counselor Realty franchisees.