Can a Counselor Realty franchisee face competition from other channels of distribution?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees or Franchisor-owned outlets, or from other channels of distribution. During the term of the Franchise Agreement, Counselor will not itself establish or operate a "Counselor" office, or license another to establish or operate a "Counselor" office within the Territory. However, both Counselor and other "Counselor" franchisees are free to enter into, and to provide residential and commercial real estate brokerage services within, your Territory, and you are free to provide real estate brokerage services in territories in which other franchisees' "Counselor" offices are located. Continuation of your rights in the Territory is contingent on your achieving and maintaining the minimum sales agent schedule agreed upon by you and Counselor, and on your payment of continuing agent fees based on that schedule. See Item 6. Counselor is engaged in the real estate brokerage business and reserves the right to establish and conduct this business at any location except as described above.
Source: Item 12 — TERRITORY (FDD pages 21–23)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, a franchisee may face competition from various sources. Specifically, the FDD states that a franchisee will not receive an exclusive territory. This means that during the term of the Franchise Agreement, a Counselor Realty franchisee may face competition from other franchisees, franchisor-owned outlets, or other channels of distribution. However, Counselor Realty will not itself establish or operate a "Counselor" office, or license another to establish or operate a "Counselor" office within the Territory.
Despite this, both Counselor Realty and other franchisees are free to enter into and provide real estate brokerage services within a franchisee's territory, and franchisees are also free to provide real estate brokerage services in territories where other franchisees' offices are located. This lack of an exclusive territory could intensify competition among franchisees and with the franchisor itself.
Continuation of a franchisee's rights within their territory is contingent upon achieving and maintaining an agreed-upon minimum sales agent schedule and paying continuing agent fees based on that schedule. Counselor Realty is engaged in the real estate brokerage business and reserves the right to conduct this business at any location, except as specifically restricted in the Franchise Agreement. This open competitive environment means that a Counselor Realty franchisee must be prepared to compete actively to maintain and grow their business within their designated territory.