Does Counselor Realty currently approve or disapprove specific suppliers for Counselor Realty franchisees?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
Although Counselor establishes various standards and specifications for the goods and services that go into the establishment and operation of your Business, Counselor currently does not approve or disapprove suppliers as such (as distinguished from the goods or services they supply) and therefore currently maintains no criteria for approving suppliers or communicating approval or revocation of approval of suppliers to franchisees. Counselor may establish such criteria in the future. You may be directed to vendors able to supply portions of your requirements for certain items used in the ongoing operation of the Business. Counselor does not derive income solely from purchases made by franchisees from third party suppliers. Third party suppliers may make contributions from time to time to System sales promotion, advertising or other programs. Counselor also reserves the right to receive fees or other consideration in exchange for rights licensed or services rendered to third parties, including vendors. Counselor does not guarantee the availability of independent sources of supply for any particular product or service required to establish or operate a Business.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–16)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, while franchisees must adhere to Counselor Realty's standards and specifications for signage, supplies, fixtures, equipment, and certain inventory, Counselor Realty does not currently have a system in place for formally approving or disapproving specific suppliers. Franchisees can source authorized goods and services from any available supplier, provided they meet Counselor Realty's established standards.
Counselor Realty does, however, reserve the right to establish criteria for approving suppliers in the future. Currently, Counselor Realty may direct franchisees to vendors who can fulfill specific requirements for certain operational items. It's important to note that Counselor Realty does not receive income directly from franchisee purchases from third-party suppliers, although these suppliers may contribute to system-wide sales promotion or advertising programs. Counselor Realty also retains the right to receive fees or other consideration for licensing rights or services to third parties, including vendors.
Prospective franchisees should understand that Counselor Realty does not guarantee the availability of independent sources for any particular product or service needed to establish or operate the business. This means franchisees need to be diligent in finding reliable suppliers who meet Counselor Realty's standards. While franchisees have flexibility in choosing suppliers, they must ensure that all goods and services meet the standards outlined in the Franchise Policy Guidelines to maintain brand consistency and operational standards.