What factors will affect the costs when starting a Counselor Realty franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 7: INITIAL INVESTMENT]
| (1) Type of Expenditure | (2) Amount | (3) Method of Payment | (4) When Due | (5) To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Fee (see Item 5) | $7,500 to $15,000 | Lump sum | When you sign Franchise Agreement | Counselor |
| Real Estate Lease and ImprovementsA | $600 to $12,500 | (See Note A) | (See Note A) | (See Note A) |
| (1) Type of Expenditure | (2) Amount | (3) Method of Payment | (4) When Due | (5) To Whom Payment is to be Made |
| Fixtures and | $1,000 to | As incurred | Before | Vendors |
| FurnishingsB | $15,000 | opening | ||
| Opening Inventory of SuppliesC | $500 to $1,000 | Lump sum | Before opening | Vendors |
| InsuranceD | $1,500 to | Lump sum | Before | Insurance |
| $6,000 | opening | Carriers | ||
| Training Costs (see Item 6) | $0 to $6,200 | As incurred | As billed (for those paid to Counselor); otherwise, as incurred | Counselor, Vendors |
| Internet | $750 to $4,000 | As incurred | As billed | Vendors |
| DevelopmentE | ||||
| SignageF | $1,000 to | As incurred | Before | Approved |
| $10,000 | opening | Vendors | ||
| Professional | $0 to $6,000 | As incurred | Before | Attorneys, |
| FeesG | opening | Accountants | ||
| Additional Funds (for three months' operations)H | $10,000 to $30,000 | As incurred | As incurred | Counselor, Vendor, Employees, Suppliers, Utilities |
| Total | $22,850 to $105,700I |
Notes to Item 7, above:
A. Counselor estimates that you will need at least 800, but not more than 6,000, square feet of commercial space to operate your Business, depending on the number of agents you wish to employ. If you do not already own or lease the required space, you are responsible for locating and acquiring the space for your Office (subject to Counselor's consent to the site). The cost to purchase or lease real estate varies widely between locations. If you purchase your Office space, your cost will depend on the size and location of the space and the type of improvements you choose to make. If you lease Office space, we estimate that your cost (including improvements) could range from $10 per square foot per year to $35 per square foot per year or more. You are responsible at your cost for all zoning and land use permitting requirements.
B. Your Office will need desks, chairs, scanners, copy machine(s), computers, etc. If you already operate a real estate office, you should not need to purchase new furniture and equipment. If you do not already operate a real estate office, we estimate that your cost for these items will range from $1,000 to $15,000, depending on the amount and type of furniture and equipment you select and the size of your operation.
C.
Your required expenditure for an initial inventory of supplies necessary to begin operating your Business will depend on the size of your Office and Business operation.
- D.
You must provide types and levels of insurance coverage required by the state in which you operate your Business.
You also must maintain other insurance required by law, and by your Office lease or mortgage, and errors and omissions insurance coverage.
You must maintain general liability insurance on an occurrence basis with a minimum limit of at least $1,000,000 per occurrence and $2,000,000 in the aggregate, and errors and omissions insurance with a minimum limit of at least $1,000,000.
The costs that are incurred to develop a franchisee's website vary based upon the following: size of office (number of agents, size of territory, content required by franchisee) and cost to purchase IDX or similar shared listing content.
Costs for signage vary significantly, depending on the type and size of signage you select.
Variations in local signage ordinances make it impossible to predict your exact cost, but we estimate your signage costs will be between $1,000 and $10,000.
If you hire an attorney to review documents or assist you in forming your business organization, or an accountant to assist you with tax and other matters, we estimate that you could incur professional fees of up to $6,000 or more.
This estimates your expenses, including payroll and other operating expenses over an arbitrary initial start-up period of three months.
These figures are estimates only and Counselor does not guarantee that you will not have additional expenses starting the business.
Your costs will depend on factors such as the degree to which you follow Counselor's methods and procedures for operating your Business, your management skill, experience and business acumen, general economic conditions, prevailing wage rates and competition.
Other costs and fees are described in Item 6.
This estimate does not imply that the Business will be successful or profitable, or operate at breakeven, within this period or at any time.
See Item 19.
- I.
Source: Item 7 — INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, several factors can influence the initial investment required to start a franchise. The initial fee ranges from $7,500 to $15,000, paid as a lump sum when signing the Franchise Agreement. Real estate costs, including lease and improvements, can vary significantly, estimated between $600 and $12,500, depending on location and the extent of improvements needed. Counselor Realty estimates franchisees will need 800 to 6,000 square feet of commercial space, with lease costs potentially ranging from $10 to $35 or more per square foot annually. The size of the office and the number of agents a franchisee plans to employ directly impact these real estate expenses.
Fixtures and furnishings are another variable cost, estimated from $1,000 to $15,000, contingent on whether the franchisee already operates a real estate office and the type and amount of furniture and equipment selected. Opening inventory of supplies ranges from $500 to $1,000, depending on the office size and business operation scale. Insurance costs are estimated between $1,500 and $6,000 annually, influenced by the types and levels of coverage required by the state and the specific insurance carrier. Website development costs also vary based on office size, the number of agents, territory size, and the cost to purchase IDX or similar shared listing content.
Signage costs can range from $1,000 to $10,000, depending on the type and size of signage chosen, and local ordinances. Professional fees for attorneys and accountants could add up to $6,000 or more. Additionally, the FDD notes that additional funds for the first three months of operation could range from $10,000 to $30,000, covering payroll and other operating expenses. These costs are influenced by factors such as adherence to Counselor Realty's operating methods, management skills, economic conditions, wage rates, and competition. These figures are estimates, and Counselor Realty does not guarantee that franchisees will not incur additional expenses.