What is the dependency between population increase and territory alteration for a Counselor Realty franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon renewal of your franchise and during the successor term, if any, Counselor may alter your Territory if the population in your Territory has increased to exceed the maximum population then allowed by Counselor for a single franchise territory, or if you failed to maintain the minimum required number of agents during the prior term.
Source: Item 12 — TERRITORY (FDD pages 21–23)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the franchisor may alter a franchisee's territory upon renewal if the population in that territory has increased beyond the maximum population allowed for a single franchise territory. This policy is in place to ensure that territories remain balanced in terms of market potential.
For a prospective Counselor Realty franchisee, this means that the size and boundaries of their territory are not permanently fixed. If the area experiences significant population growth, Counselor Realty reserves the right to adjust the territory to maintain competitive balance and opportunity among franchisees. This could involve shrinking the territory or dividing it into multiple franchise units.
It's important to note that territory alteration is not solely dependent on population increase. Counselor Realty may also alter a territory if the franchisee fails to maintain the minimum required number of agents during the prior term. This highlights the importance of meeting performance expectations to maintain the original territory boundaries. Franchisees should discuss with Counselor Realty what the maximum population is for a single territory and what the minimum agent requirements are to fully understand the conditions under which their territory could be altered.