How does Counselor Realty define 'operating through' an office for a licensed agent?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
. You must pay a monthly Continuing Agent Fee to Counselor based upon the number of licensed agents operating through your Office (including any Additional Offices and Extension Offices) at any time during the month as follows: $53 per licensed agent for the sixth through 15th licensed agent operating through your Office(s); $37 per licensed agent for the 16th through 35th licensed agent operating through your Office(s); and $32 per licensed agent for the 36th and each additional licensed agent operating through your Office(s). For purposes of clarity, if you have 50 licensed agents operating through your Office(s) for a certain month, your Continuing Agent Fee for that month would be $1,750 ($53 multiplied by 10, plus $37 multiplied by 20, plus $32 multiplied by 15). For purposes of calculating the Continuing Agent Fee, the number of agents operating through your Office(s) for any given month shall be the number of licensed agents listed as operating through your Office(s) with the Minnesota Department of Commerce on the first day of the applicable month. If Counselor has consented to any Additional Office locations or Extension Office locations, any licensed agents operating from any such Additional Office locations or Extension Office locations will be counted in the number of agents operating through your Office for purposes of the Continuing Agent Fee. You must notify Counselor immediately in writing each time a licensed agent begins operating through your Office(s) (including any Additional Offices or Extension Offices).
- C. 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 6 — OTHER FEES (FDD pages 9–13)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the number of licensed agents 'operating through' an office is determined by the number of agents listed as operating through the franchisee's office with the Minnesota Department of Commerce on the first day of the applicable month. This definition is relevant for calculating the Continuing Agent Fee.
This definition has a direct financial impact on franchisees. The Continuing Agent Fee is a monthly fee that franchisees must pay to Counselor Realty based on the number of licensed agents affiliated with their office. The fee structure is tiered: $53 per licensed agent for the 6th through 15th agent, $37 per licensed agent for the 16th through 35th agent, and $32 per licensed agent for the 36th and each additional agent. For example, an office with 50 licensed agents would incur a Continuing Agent Fee of $1,750 per month.
Furthermore, franchisees are obligated to notify Counselor Realty in writing each time a licensed agent begins operating through their office, including any Additional Offices or Extension Offices. This ensures accurate calculation and billing of the Continuing Agent Fee. The FDD also clarifies that if Counselor Realty has approved Additional Office or Extension Office locations, agents operating from these locations are included in the total count for the Continuing Agent Fee. This means that a franchisee's financial obligations extend beyond the agents working directly from the primary franchised location.
For franchisees located within the 11-county metropolitan area of the Twin Cities of Minneapolis and St. Paul, Minnesota, there is an additional Advertising Fee of $60 per agent per month. This fee applies to each agent operating out of the Office, Additional Office, or Extension Office within that metropolitan area. For offices outside the Twin Cities area, franchisees may be required to join a Regional Advertising Group and pay an Advertising Fee of $25 per agent per month to the Regional Advertising Fund once such a group is established.