What fees are Counselor Realty franchisees required 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 beginning on the date the office opens.
Cash
The Company maintains its cash in financial institutions. The balance, at times, may exceed federally insured limits.
Certificate of Deposit
The Company has two certificates of deposit with an original maturity date of greater than three months from the date they were acquired, hence they are not considered cash equivalents.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 FDD, Counselor Realty franchisees 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. Franchisees also pay ongoing monthly franchise fees. The amount of these monthly fees covers up to five licensed agents, with additional monthly fees charged for each licensed agent above that number operating from or through the franchisee's office.
In addition to the initial and monthly franchise fees, Counselor Realty franchisees located within the 11-county metropolitan area of the Twin Cities are required to pay a monthly metro advertising fee for each licensed agent. These fees contribute to advertising efforts within the metropolitan area. The FDD also indicates that the company charges 8% interest on past due accounts, which means franchisees could incur additional costs if they don't pay their fees on time.
It's important to note that the monthly franchise fee revenue for Counselor Realty was $57,634 in 2024, $63,751 in 2023, and $73,235 in 2022. Additionally, the monthly metro advertising fees collected were $3,480 in 2024, $2,880 in 2023 and $3,600 in 2022. These figures provide some context as to how these fees contribute to the franchisor's revenue stream. A prospective franchisee should consider these required fees when evaluating the overall financial investment and potential profitability of a Counselor Realty franchise.