According to Counselor Realty's 2025 Franchise Disclosure Document, Counselor Holding, Inc., the parent company, allocates expenses to Counselor Realty based on the usage of certain system tools and employees. The total expenses allocated to Counselor Realty were $37,278 for the year ended December 31, 2024, $34,342 for the year ended December 31, 2023, and $41,038 for the year ended December 31, 2022.

This means that Counselor Realty franchisees indirectly bear a portion of the costs associated with the system tools and employees used by the franchisor. These allocated expenses can impact the profitability of the franchise, as they are deducted from the revenue to determine net income. Understanding the basis for these allocations is important for franchisees to assess the fairness and transparency of the franchisor's accounting practices.

Prospective franchisees should consider these related-party transactions and allocated expenses when evaluating the financial performance of Counselor Realty. It would be prudent to inquire about the specific system tools and employees that contribute to these allocations and how their usage is measured. This information can help franchisees better understand the value they receive in exchange for these allocated expenses and assess the potential impact on their bottom line.