What happens if Counselor Realty rejects the proposed site for the franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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 5 — INITIAL FEES (FDD page 9)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, if Counselor Realty rejects the franchisee's proposed site, the franchisee has an additional 60 days to find a site that is acceptable. If the franchisee fails to do so, the Franchise Agreement will automatically terminate. In the event of termination due to site rejection, Counselor Realty will refund the Initial Fee to the franchisee. However, Counselor Realty will deduct any expenses they incurred while reviewing the proposed site(s) from this refund.
This condition highlights the importance of thorough site selection and communication with Counselor Realty during the initial phase. The franchisee bears the risk of losing time and incurring expenses if the initial site is rejected. The deduction of Counselor Realty's expenses from the refunded Initial Fee means the franchisee will not be fully reimbursed for their initial payment.
Prospective franchisees should carefully consider potential site locations and, ideally, consult with Counselor Realty early in the selection process to minimize the risk of rejection. Understanding the criteria Counselor Realty uses to evaluate sites can help franchisees make informed decisions and avoid potential losses. It is also advisable to clarify what expenses Counselor Realty might deduct from the Initial Fee refund in case of site rejection to fully understand the financial implications.