What happens if Counselor Realty rejects the initial site proposed by the franchisee?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
You must select a site for your Office within 180 days after you sign the Franchise Agreement. After you notify Counselor of a proposed site for your Office, Counselor has 30 days to review the site and to notify you whether or not it consents to your operation of the Business at that site. If Counselor rejects the site you propose, you will have an additional 60 days to locate a site that is acceptable to Counselor. If you fail to do so, the Franchise Agreement will automatically terminate and Counselor will refund your Initial Fee, less Counselor's expenses associated with reviewing the proposed site(s). After Counselor consents to an Office site you propose, you must open your Business at that site within
six months. If you fail to do so, the Franchise Agreement will automatically terminate and your Initial Fee will not be refunded. Counselor may, in its sole discretion, grant extensions of the deadlines described above.
Source: Item 12 — TERRITORY (FDD pages 21–23)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, if Counselor Realty rejects the initial site proposed by the franchisee, the franchisee has an additional 60 days to locate a site that is acceptable to Counselor Realty. If the franchisee fails to find an acceptable site within that 60-day period, the Franchise Agreement will automatically terminate. In this case, Counselor Realty will refund the franchisee's Initial Fee, less Counselor Realty's expenses associated with reviewing the proposed site(s).
This clause is important for prospective franchisees as it outlines the procedure and potential financial implications if the initial site selection is not approved. The franchisee bears the risk of losing expenses related to the site review if they cannot find an alternative acceptable location within the given timeframe. This is a fairly standard practice in franchising, as franchisors typically want to ensure that the location meets certain criteria to maintain brand consistency and potential for success.
It is also important to note that after Counselor Realty consents to a site, the franchisee must open their Counselor Realty business at that site within six months. Failure to do so will result in the automatic termination of the Franchise Agreement, and the Initial Fee will not be refunded. However, Counselor Realty may, at its sole discretion, grant extensions of these deadlines.