Is a Counselor Realty franchisee prohibited from using advertising materials that Counselor Realty has specifically disapproved?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
You may develop advertising materials for your own use, at your own expense. Advertising materials and media (including print, audio, video, website and computer-transmitted media) must conform at all times to Counselor's brand standard and image. If Counselor determines, in its sole discretion, that any advertising materials or media do not conform to Counselor's brand standard or image, you will alter or remove any such advertising materials or media, as directed in writing by Counselor. You have the option to develop your own website as part of your overall promotion strategy. Your use of Counselor's trademarks in any advertising materials and media must conform at all times to the requirements set forth in the Franchise Agreement. Counselor does not currently require any advertising materials or media to be approved by Counselor prior to you using them, but reserves the right to review and approve any advertising materials or media (and to require you to alter or cease using all or any portion of such advertising materials or media it does not approve).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 17–21)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, franchisees must adhere to Counselor Realty's brand standards and image in all advertising materials. While Counselor Realty does not currently require pre-approval of advertising materials, it retains the right to review and approve them. If Counselor Realty determines that any advertising materials or media do not conform to its brand standard or image, the franchisee is required to alter or remove the materials as directed in writing by Counselor Realty. This includes print, audio, video, website, and computer-transmitted media.
This policy means that a Counselor Realty franchisee has the freedom to develop their own advertising materials but must ensure they align with the franchisor's brand standards. The franchisee bears the risk that materials they develop may be disapproved by Counselor Realty, requiring them to be altered or removed at the franchisee's expense. This highlights the importance of understanding Counselor Realty's brand standards and image guidelines before investing in advertising development.
Counselor Realty's right to disapprove advertising materials is a fairly standard practice in franchising, allowing the franchisor to maintain brand consistency and protect its image. Prospective franchisees should carefully review the brand standards outlined in the Franchise Agreement and any related policy guidelines to minimize the risk of disapproval. It would be prudent for a potential franchisee to discuss specific advertising concepts with Counselor Realty during the due diligence process to gain clarity on what is acceptable and what is not.
Furthermore, Counselor Realty also provides options for franchisees to utilize promotional materials prepared by or for Counselor Realty, which can be purchased at prices periodically established by Counselor Realty. This offers a potentially safer alternative for franchisees who prefer to use pre-approved materials and avoid the risk of disapproval associated with developing their own advertising.