What is the definition of 'Regional Advertising Group' for Counselor Realty?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
this Agreement 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. The amount of your Advertising Fees for the Regional Advertising Group may be increased during the term of this Agreement by a majority vote of the "Regiona
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, a 'Regional Advertising Group' is an organization that Counselor Realty reserves the right to establish if a franchisee's office is located outside the 11-county metropolitan area of the Twin Cities of Minneapolis and St. Paul, Minnesota. If such a group is established, franchisees located outside the Twin Cities area must become members and pay an advertising fee of $25 per agent per month to the 'Regional Advertising Fund'.
The purpose of the Regional Advertising Group is to manage marketing activities specific to regions outside the Twin Cities. The funds collected are used for these regional marketing efforts. The amount of the advertising fees can be increased during the franchise agreement term by a majority vote of the 'Regional Advertising Committee,' which manages the Regional Advertising Group.
This structure allows for localized advertising strategies and potentially greater control over marketing spend for franchisees outside the main metropolitan area. However, it also introduces the risk of increased fees if the Regional Advertising Committee votes to raise them. Prospective franchisees should inquire about the history and activities of any existing Regional Advertising Groups to better understand how these groups operate and how fees are managed.