Can a Counselor Realty franchisee face competition from other franchisees?
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, franchisees may face competition from other franchisees. The FDD states that a franchisee will not receive an exclusive territory. Therefore, a franchisee may face competition from other franchisees or franchisor-owned outlets, or from other channels of distribution.
Counselor Realty itself will not establish or operate a "Counselor" office, or license another to establish or operate a "Counselor" office within the Territory during the term of the Franchise Agreement. However, both Counselor Realty and other "Counselor" franchisees are free to enter into, and to provide residential and commercial real estate brokerage services within, a franchisee's Territory. A franchisee is also free to provide real estate brokerage services in territories in which other franchisees' "Counselor" offices are located.
It is important to note that the continuation of a franchisee's rights in their territory is contingent on achieving and maintaining the minimum sales agent schedule agreed upon by the franchisee and Counselor Realty, and on the franchisee's payment of continuing agent fees based on that schedule. Counselor Realty 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.