How does Counselor Realty determine which agents are 'operating through' an office for fee calculation purposes?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
For purposes of calculating the Continuing Agent Fee pursuant to this Section 5.3, the number of agents operating through your Office for any given month shall be the number of licensed agents listed as operating through your Office with the Minnesota Department of Commerce on the first day of the applicable month.
At the beginning of each month, we will send you an invoice for the amount of the Continuing Agent Fee you owe us for the current month, and you must pay us the amount of such Continuing Agent Fee on or before the 20th day of such 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 this Section 5.3.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the number of agents operating through an office for the purpose of calculating the Continuing Agent Fee is determined by the number of licensed agents listed as operating through the franchisee's office with the Minnesota Department of Commerce on the first day of the applicable month. This is a straightforward method that relies on official state records to determine the agent count.
This method has important implications for franchisees. It provides a clear and objective standard for calculating fees, reducing potential disputes over agent counts. However, it also means that franchisees must ensure their agent listings with the Minnesota Department of Commerce are accurate and up-to-date to avoid overpaying or underpaying Continuing Agent Fees. Any discrepancies in the agent count on the first day of the month will directly impact the fee calculation for that month.
Furthermore, the FDD clarifies that if Counselor Realty has consented to any Additional Office locations or Extension Office locations, any licensed agents operating from these locations will be included in the total number of agents operating through the franchisee's Office for the purpose of calculating the Continuing Agent Fee. This means that franchisees with multiple office locations will need to consider the total number of agents across all locations when calculating their monthly fees. This policy ensures that Counselor Realty receives appropriate compensation for all agents operating under the franchise, regardless of their physical location.