Who determines the eligibility requirements for a Counselor Realty Territory Opportunity?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
If Counselor has consented to any Extension Office, you will not receive any territorial protections with respect to such Extension Office.
Both Counselor and other "Counselor" licensees may provide residential and commercial real estate brokerage services anywhere near such
Extension Office. In addition, Counselor may itself establish or operate a "Counselor" office, or license another to establish or operate a "Counselor" office, anywhere near such Extension Office; provided, however, that if Counselor proposes to license another to establish or operate a "Counselor Office" with a territory that would include the location where such Extension Office is located (a "Territory Opportunity"), we will provide you with a right of first refusal for such Territory Opportunity on the following terms:
- (i) we will provide you with written notice of a Territory Opportunity, and you will have 30 days to advise us in writing that you wish to participate in the Territory Opportunity;
- (ii) if you do not notify us within such period, then we may pursue such Territory Opportunity and/or grant any other person or entity the right to participate in such Territory Opportunity without any liability to you; and
- (iii) if you timely notify us in writing that you wish to participate in the Territory Opportunity, then we may condition your participation on compliance with such terms and conditions as we consider appropriate to the particular Territory Opportunity, including: (i) execution of such franchise agreement and related agreements as are then generally used by us in connection with the award of the applicable Territory Opportunity; (ii) timely payment of all initial fees and any other fees charged by us or our affiliate in connection with the award or grant of the applicable Territory Opportunity; and (iii) meeting our then-current eligibility requirements applied by us to candidates for such Territory Opportunity.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, Counselor Realty determines the eligibility requirements for a Territory Opportunity. Specifically, if Counselor Realty proposes to license another to establish or operate a Counselor Realty office with a territory that would include the location where an Extension Office is located, Counselor Realty will provide the existing franchisee with a right of first refusal for such Territory Opportunity.
If the franchisee notifies Counselor Realty that they wish to participate in the Territory Opportunity, Counselor Realty may condition their participation on compliance with terms and conditions that Counselor Realty considers appropriate. These conditions include executing the franchise agreement and related agreements then generally used by Counselor Realty, timely payment of all initial fees and any other fees charged by Counselor Realty or its affiliate, and meeting Counselor Realty's then-current eligibility requirements applied to candidates for such Territory Opportunity.
This means that while a franchisee may have a right of first refusal, Counselor Realty ultimately decides whether the franchisee meets the necessary qualifications to be awarded the Territory Opportunity. This determination is based on Counselor Realty's current standards for new franchisees, ensuring consistency across the franchise system. A prospective franchisee should inquire about these eligibility requirements to understand the specific criteria they would need to meet to expand their territory.