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What is the condition that triggers the requirement to pay the lower Advertising Fee for Counselor Realty?

Counselor_Realty Franchise · 2025 FDD

Answer from 2025 FDD Document

. 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, you must pay 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. The amount of this Advertising Fee may be increased during the term of the franchise 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.

Source: Item 22 — CONTRACTS (FDD page 32)

What This Means (2025 FDD)

According to Counselor Realty's 2025 Franchise Disclosure Document, the advertising fee structure depends on the location of the franchise. If a 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 an Advertising Fee of $60 per agent per month. This area includes the counties of Scott, Wright, Isanti, Dakota, Anoka, Hennepin, Washington, Carver, Ramsey, Sherburne, and Chisago. This fee contributes to the general marketing activities conducted by Counselor Realty within that specific region.

However, if the Counselor Realty office is located outside the Twin Cities metropolitan area, a different advertising fee structure applies. In this case, the franchisee must become a member of the "Regional Advertising Group" (once it is established) and contribute to the "Regional Advertising Fund." The Advertising Fee for these offices is $25 per agent per month. This lower fee reflects the potentially different marketing needs and strategies for offices operating outside the main metropolitan area.

It's important to note that the amounts for both advertising fees (both the $60 and $25 options) are subject to change. For offices within the Twin Cities area, Counselor Realty has the discretion to increase the Advertising Fee during the term of the Franchise Agreement. For offices in the Regional Advertising Group, the fee can be increased by a majority vote of the "Regional Advertising Committee." This means that franchisees need to be prepared for potential increases in their advertising expenses over time, depending on their location and the decisions made by Counselor Realty or the Regional Advertising Committee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.