What is the definition of the 'Territory' in the Counselor Realty franchise agreement?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
ORY
The Franchise Agreement authorizes you to establish and operate one Counselor Business at a single Office location within a designated geographic area (the "Territory"). You must obtain our written consent prior to opening or operating any additional Office locations. If the population in your Territory at the time you sign the Franchise Agreement is less than 10,000, your Initial Fee will be $7,500; if the population is 10,000 or more, your Initial Fee will be $15,000. Population figures are determined using then-current census data. You must select a site for your Office within 180 days after you sign the Franchise Agreement. After you notify Counselor of a proposed site for your Office, Counselor has 30 days to review the site and to notify you whether or not it consents to your operation of the Business at that site. If Counselor rejects the site you propose, you will have an additional 60 days to locate a site that is acceptable to Counselor. If you fail to do so, the Franchise Agreement will automatically terminate and Counselor will refund your Initial Fee, less Counselor's expenses associated with reviewing the proposed site(s). After Counselor consents to an Office site you propose, you must open your Business at that site within
six months. If you fail to do so, the Franchise Agreement will automatically terminate and your Initial Fee will not be refunded. Counselor may, in its sole discretion, grant extensions of the deadlines described above.
You may apply to open one or more additional offices within your designated Territory (an "Additional Office") by submitting a request to Counselor describing the location of such proposed Additional Office as well as any additional information Counselor may require or request, along with a one-time fee of $750 for each Additional Office location (the "Additional Office Application Materials"). After Counselor's receipt of such Additional Office Application Materials (including the one-time fee), Counselor will have 30 days to review the Additional Office Application Materials and proposed Additional Office location and notify you whether or not Counselor consents to your opening of such Additional Office location. Any Additional Office we consent to must comply with all requirements of the Franchise Agreement and then-current System standards.
You may apply to open one or more additional offices outside of your designated Territory (an "Extension Office") by submitting a request to Counselor describing the location of such proposed Extension Office as well as any additional information Counselor may require or request, along with a one-time fee of $750 for each Extension Office location (the "Extension Office Application Materials"). After Counselor's receipt of such Extension Office Application Materials (including the one-time fee), Counselor will have 30 days to review the Extension Office Application Materials and proposed Extension Office location and notify you whether or not Counselor consents to your opening of such Extension Office location. Counselor's consent to any Extension Office location will be contingent on you and Counselor reaching a mutual agreement as to the minimum number of sales agents that will operate from the Extension Office. Any Extension Office we consent to must comply with all requirements of the Franchise Agreement and then-current System standards.
Before you sign the Franchise Agreement, you and Counselor will negotiate a schedule for the minimum number of real estate sales agents who must operate from your Office.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 7–8)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, the 'Territory' is defined as a designated geographic area within which the Franchise Agreement authorizes a franchisee to establish and operate one Counselor Realty business at a single office location. While franchisees can request to open additional offices within their territory or extend offices outside their territory, Counselor Realty must provide written consent for these additional locations.
It is important to note that the franchise agreement does not grant an exclusive territory to the franchisee. Franchisees may face competition from other franchisees, franchisor-owned outlets, or other channels of distribution. However, during the term of the Franchise Agreement, Counselor Realty will not establish or operate a "Counselor" office, or license another to establish or operate a "Counselor" office within the Territory. Both Counselor Realty and other "Counselor" franchisees are free to enter into, and to provide residential and commercial real estate brokerage services within, your Territory.
The continuation of a franchisee's rights within their territory is contingent upon achieving and maintaining a minimum sales agent schedule agreed upon with Counselor Realty, as well as the payment of continuing agent fees based on that schedule. If a franchisee fails to meet the agreed-upon schedule or maintain the minimum required number of agents, Counselor Realty may alter the territory or terminate the Franchise Agreement. Prospective franchisees should carefully consider these conditions and obligations before entering into a franchise agreement with Counselor Realty.