What fees must a Counselor Realty franchisee pay upon renewal?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2 Successor Franchise. If you apply in writing between 60 and 180 days before expiration of the initial term and are not in breach of this Agreement (or any related agreement) at the expiration of the initial term, you may acquire a single successor franchise for five years, using the form of Counselor Franchise Agreement we are then using (which may differ from this Agreement), but without further renewal. Your Franchise Agreement for the successor term, if any, will include a new minimum Office sales agent requirement schedule negotiated by you and Counselor. Upon renewal of your franchise and during the successor term, if any, (i) your Territory may be altered 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 number of agents during the prior term, and (ii) you must pay all fees in the amount then being charged by Counselor for new franchises. You also must first complete reasonable upgrading and refurbishment of your Office (including any Additional Offices and Extension Offices, if applicable) to then-current System standards.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, a franchisee seeking a successor franchise agreement must meet certain conditions and pay specific fees. To be eligible for a successor franchise, the franchisee must apply in writing between 60 and 180 days before the expiration of the initial term and must not be in breach of the existing agreement. The successor franchise term is for five years, and the agreement used will be the then-current form, which may differ from the original agreement. This successor agreement does not include any further renewal options.
Upon renewal, Counselor Realty franchisees must pay all fees in the amount then being charged by Counselor Realty for new franchises. Additionally, the franchisee must complete reasonable upgrades and refurbishment of their office, including any Additional Offices and Extension Offices, to meet the then-current system standards.
Furthermore, the territory granted in the successor franchise agreement may be altered if the population in the franchisee's territory has increased beyond the maximum allowed by Counselor Realty for a single franchise or if the franchisee failed to maintain the minimum number of agents during the prior term. This condition highlights the importance of maintaining agent numbers and monitoring territory demographics to avoid potential changes to the franchise territory upon renewal.