Is a Counselor Realty franchisee required to investigate real estate agent regulations?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
You must at all times possess a bona fide real estate broker's license in good standing under the laws of the state where the Business is located. If you are a partnership, corporation or other entity, you must be legally authorized to do business in the state where your Business is located. At all times during the term of the franchise you must keep in force all necessary licenses and permits required by public authorities. The Wisconsin Department of Regulation and Licensing, the Wisconsin Realtors Association, the National Association of Realtors, local Boards of Realtors, and the Federal Trade Commission have adopted various regulations which govern the activities and business practices of real estate agents. You must comply with all of these regulations and should investigate them before deciding whether to purchase a Counselor franchise.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 7–8)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, a franchisee is required to investigate regulations affecting real estate agents before purchasing a franchise. The FDD states that various regulations govern the activities and business practices of real estate agents, and the franchisee must comply with all of them.
The regulations are put in place by organizations such as the Wisconsin Department of Regulation and Licensing, the Wisconsin Realtors Association, the National Association of Realtors, local Boards of Realtors, and the Federal Trade Commission. It is the franchisee's responsibility to ensure they are aware of and adhere to these rules.
This requirement underscores the importance of due diligence before investing in a Counselor Realty franchise. A prospective franchisee should thoroughly research all applicable regulations to understand the full scope of their obligations and responsibilities. This investigation will help ensure they can operate the franchise in compliance with the law and avoid potential penalties or legal issues.