What fees does the Counselor Realty franchisee agree to pay?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
subsidiary of Counselor Holding, Inc.
The franchise agreement includes the following:
- The Company agrees to grant franchisees the use of its Systems and Marks to operate a real estate brokerage business.
- The franchisee agrees to pay an initial fee, monthly franchise fees and metro advertising fees when applicable.
- The Company agrees to provide an initial training program and may offer additional training programs from time to time.
There were no new franchises sold in 2024, 2023, or 2022. There were no franchise renewals in 2024, 2023 or 2022. No franchise renewal fees are required. There were five franchised outlets as of December 31, 2024 and 2023. There were seven franchise outlets as of December 31, 2022. One franchise agreement expired in March 2023 and was not renewed. One franchise agreement expired in December 2022 and was not renewed. Initial franchise fees are typically $7,500 to $15,000 per franchise, as determined by the population of the franchise territory. The franchisee agrees to pay a base monthly fee covering up to five licensed agents and additional monthly fees per licensed agent above five operating from or through their office. The monthly franchise fee revenue was $57,634, $63,751 and $73,235 for the years ended December 31, 2024, 2023 and 2022, respectively. If the franchisee is located within the 11-county metropolitan area of the Twin Cities, there is a monthly metro advertising fee per licensed agent. The agreement term is five years b
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, a franchisee must pay several fees. These include an initial franchise fee, which typically ranges from $7,500 to $15,000, depending on the population of the franchise territory. In addition to the initial fee, franchisees are required to pay ongoing monthly franchise fees. These monthly fees cover up to five licensed agents. If the franchisee has more than five licensed agents operating from their office, they will incur additional monthly fees per agent.
If the Counselor Realty franchise is located within the 11-county metropolitan area of the Twin Cities, the franchisee is also subject to a monthly metro advertising fee for each licensed agent. These fees contribute to local advertising efforts within the metropolitan area. The FDD states that the Counselor Realty franchise agreement term is five years, beginning on the date the office opens.
Accounts receivable consists of franchise related fees. Accounts receivable are unsecured and Counselor Realty charges 8% interest on past due accounts. Accounts receivable are considered past due if not paid within the terms established. The company's revenues are comprised of initial franchise fees and monthly franchise and metro advertising fees. Initial franchise fees are a onetime fee paid by new franchisees and are recognized over the term of the contract, in the period earned. Monthly franchise and metro advertising fees are billed monthly and recognized over time, in the period earned.