Are fees paid to third parties refundable for a Counselor Realty franchise?

According to Counselor Realty's 2025 Franchise Disclosure Document, fees paid directly to Counselor Realty are generally non-refundable. However, the FDD states that fees paid to third parties may be refundable, but this is at the discretion of the specific third party. This means a prospective Counselor Realty franchisee should carefully review the terms and conditions of any agreements with third-party vendors to understand their refund policies.

Item 7 of the FDD outlines various estimated initial investments, many of which involve payments to third parties. These include real estate leases and improvements, fixtures and furnishings, opening inventory of supplies, insurance, internet development, signage, and professional fees for attorneys and accountants. The amounts listed in the table are estimates, and the actual costs may vary.

Since the refundability of these fees depends on the third party's policies, it is essential for a potential Counselor Realty franchisee to clarify these policies before making any payments. For example, if a franchisee pays for a year of insurance upfront, they should confirm whether a refund is possible if they terminate the policy early. Similarly, the refund policy for internet development costs should be verified with the vendor. Understanding these refund policies can help a franchisee manage their initial investment and mitigate potential financial losses.

In summary, while Counselor Realty's fees are non-refundable, franchisees may be able to obtain refunds from third-party vendors, depending on their specific agreements. Therefore, due diligence in reviewing and understanding the refund policies of these vendors is crucial for any prospective Counselor Realty franchisee.