Does Counselor Realty grant an exclusive territory to its 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 do not receive an exclusive territory. While Counselor Realty will not establish or operate another Counselor Realty office or license another to do so within the franchisee's designated territory, both Counselor Realty and other franchisees are permitted to provide real estate services within that territory. This means a franchisee may face competition from other franchisees, franchisor-owned outlets, or other distribution channels. The Franchise Agreement authorizes the franchisee to establish and operate one Counselor Realty business at a single office location within a designated geographic area.
The franchisee can apply to open additional offices within their designated territory (referred to as "Additional Offices") or outside their territory ("Extension Office"), each requiring a $750 fee for the application. Counselor Realty has 30 days to review the application and notify the franchisee of their decision. The approval of an Extension Office is contingent upon reaching a mutual agreement regarding the minimum number of sales agents that will operate from that location. If a franchisee fails to meet the agreed-upon schedule for the minimum number of agents, they may lose their right to operate exclusively in the territory, the territory may be altered, or the Franchise Agreement may be terminated.
If Counselor Realty proposes to license another to establish a Counselor Realty office with a territory that includes the location of an Extension Office, the franchisee will have a right of first refusal for that territory opportunity. This right is contingent on the franchisee notifying Counselor Realty within 30 days of the offer and complying with the terms and conditions deemed appropriate by Counselor Realty, including executing the franchise agreement, paying the necessary fees, and meeting the eligibility requirements. The continuation of the franchisee's rights within their territory depends on achieving and maintaining the minimum sales agent schedule agreed upon with Counselor Realty and paying the continuing agent fees based on that schedule.