Does the geographic restriction for Counselor Realty apply to extension offices?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
If Counselor has consented to any Extension Office, you will not receive any territorial protections with respect to such Extension Office.
Both Counselor and other "Counselor" licensees may provide residential and commercial real estate brokerage services anywhere near such
Extension Office. In addition, Counselor may itself establish or operate a "Counselor" office, or license another to establish or operate a "Counselor" office, anywhere near such Extension Office; provided, however, that if Counselor proposes to license another to establish or operate a "Counselor Office" with a territory that would include the location where such Extension Office is located (a "Territory Opportunity"), we will provide you with a right of first refusal for such Territory Opportunity on the following terms:
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, franchisees do not receive territorial protections for Extension Offices. Counselor Realty and other licensees can provide real estate services anywhere near an Extension Office. Counselor Realty can also establish or license another to establish an office near the Extension Office. However, if Counselor Realty intends to license another to establish an office with a territory including the Extension Office location, the franchisee will have the right of first refusal for that territory opportunity.
This lack of territorial protection means that a Counselor Realty franchisee operating an Extension Office faces competition from both the franchisor and other franchisees in the vicinity of the Extension Office. This could impact the Extension Office's profitability and market share.
For a prospective franchisee, this is a crucial consideration. While Extension Offices allow expansion beyond the initially assigned territory, they come with the risk of direct competition. The right of first refusal provides some safeguard, but it requires the franchisee to be ready and able to capitalize on the opportunity to secure the territory. A prospective franchisee should carefully evaluate the potential market and competitive landscape before investing in an Extension Office.