What happens if Counselor Realty rejects the initial site I propose?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
1.2 Site Selection. You must select a site for your Office within 180 days after you sign this Agreement. After you notify us of a proposed site for your Office, we will have 30 days to review the site and to notify you whether or not we consent to your operation of the Business at that site. If we reject the site you propose, you will have an additional 60 days to locate a site that is acceptable to us. If you fail to do so, this Agreement will automatically terminate and we will refund your Initial Franchise Fee, less our expenses associated with reviewing the proposed site(s). After we consent to an Office site you propose (if at all), you must open your Business at that site within six months. If you fail to do so, this Agreement will automatically terminate and your Initial Franchise Fee will not be refunded. We may, in our sole discretion, grant extensions of the deadlines described above. Our consent to a site is not a guarantee or assurance as to the availability, suitability or prospects of an Office or Business.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, a franchisee has 180 days after signing the Franchise Agreement to select a site for their office. Once the franchisee notifies Counselor Realty of a proposed site, Counselor Realty has 30 days to review and notify the franchisee whether they consent to the site.
If Counselor Realty rejects the initial site, the franchisee has an additional 60 days to find a site acceptable to Counselor Realty. If the franchisee fails to do so within this 60-day period, the Franchise Agreement will automatically terminate.
In the event of termination due to site rejection, Counselor Realty will refund the Initial Franchise Fee to the franchisee, but will deduct any expenses Counselor Realty incurred while reviewing the proposed site(s). It's important to note that even if Counselor Realty consents to a site, this consent does not guarantee the site's availability, suitability, or business prospects.