factual

On what is the continuation of a Counselor Realty franchisee's rights in the Territory contingent?

Counselor_Realty Franchise · 2025 FDD

Answer from 2025 FDD Document

Continuation of your rights in the Territory is contingent on your achieving and maintaining the minimum sales agent schedule agreed upon by you and Counselor, and on your payment of continuing agent fees based on that schedule. See Item 6. Counselor is engaged in the real estate brokerage business and reserves the right to establish and conduct this business at any location except as described above.

Source: Item 12 — TERRITORY (FDD pages 21–23)

What This Means (2025 FDD)

According to Counselor Realty's 2025 Franchise Disclosure Document, a franchisee's rights to operate within their designated territory are contingent upon meeting specific requirements. Specifically, the continuation of these rights depends on the franchisee achieving and maintaining the minimum sales agent schedule that is agreed upon between the franchisee and Counselor Realty. Additionally, the franchisee must consistently pay continuing agent fees based on this agreed-upon schedule.

This means that a Counselor Realty franchisee must actively manage and maintain a sufficient number of sales agents to meet the standards set in their agreement. Failure to meet these agent number and fee payment obligations could result in the franchisee losing their exclusive right to operate a Counselor Realty office in the territory. The territory itself may be altered at Counselor Realty's discretion, or, in more severe cases, the Franchise Agreement could be terminated altogether.

It is important to note that Counselor Realty is actively involved in the real estate brokerage business and retains the right to conduct this business at any location, except within the specific territory granted to the franchisee. This highlights the importance of adhering to the agreed-upon sales agent schedule and fee payment terms to maintain territorial rights and avoid potential conflicts or loss of exclusivity.

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.