Where in the Counselor Realty Franchise Agreement can I find information about the 'Term' section?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
3. TERM.
- 3.1 Term. The initial term of this Agreement begins on the Effective Date of this Agreement and ends five years from the Effective Date.
- 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, details regarding the term of the franchise agreement can be found in Section 3 of the agreement. Section 3.1 specifies that the initial term of the agreement begins on the effective date and lasts for five years. This means a franchisee can expect to operate under the initial agreement for this duration, assuming all obligations are met.
Section 3.2 outlines the conditions for obtaining a successor franchise. A franchisee can apply for a single successor franchise for an additional five years if they apply in writing between 60 and 180 days before the initial term expires and are not in breach of the agreement. However, the successor franchise agreement will be based on Counselor Realty's then-current form, which may differ from the original agreement, and it does not include any further renewal options.
The terms of the successor franchise may also include a new minimum sales agent requirement schedule negotiated between the franchisee and Counselor Realty. Additionally, the franchisee's territory may be altered if the population has increased beyond the maximum allowed or if the franchisee failed to maintain the minimum number of agents during the initial term. The franchisee will also be required to pay all fees in the amount then being charged by Counselor Realty for new franchises and complete upgrades and refurbishment of the office to meet current system standards. These stipulations ensure that franchisees continue to meet Counselor Realty's standards and adapt to changing market conditions.