Can Counselor Realty and its franchisees compete with my franchise within my territory?
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 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, franchisees do not receive an exclusive territory. As a Counselor Realty franchisee, you may face competition from other franchisees, franchisor-owned outlets, and other channels of distribution within your designated territory. Counselor Realty itself will not establish or operate a Counselor office, nor license another to do so, within your territory during the term of the Franchise Agreement. However, Counselor Realty and other franchisees are permitted to offer real estate brokerage services within your territory, and you are likewise permitted to offer services in other franchisees' territories.
To maintain your rights within your territory, you must meet and maintain the minimum sales agent schedule agreed upon with Counselor Realty and pay continuing agent fees based on that schedule. Counselor Realty is actively engaged in the real estate brokerage business and retains the right to conduct this business at any location, except as specifically restricted in the Franchise Agreement.
This lack of an exclusive territory is a significant factor for prospective franchisees to consider. It means that even after establishing a Counselor Realty franchise, you could face direct competition from the franchisor's own operations or from other franchisees operating in the same area. This could impact your potential market share and profitability. It is important to carefully evaluate the competitive landscape in your target area and to understand how Counselor Realty's business model and brand recognition will help you compete effectively.