If Counselor Realty consents to an Additional Office, is the franchisee obligated to open it?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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You may apply to open one or more additional offices within your designated Territory (an "Additional Office") by submitting a request to Counselor describing the location of such proposed Additional Office as well as any additional information Counselor may require or request, along with a one-time fee of $750 for each Additional Office location (the "Additional Office Application Materials"). After Counselor's receipt of such Additional Office Application Materials (including the one-time fee), Counselor will have 30 days to review the Additional Office Application Materials and proposed Additional Office location and notify you whether or not Counselor consents to your opening of such Additional Office location. Any Additional Office we consent to must comply with all requirements of the Franchise Agreement and then-current System standards.
Source: Item 12 — TERRITORY (FDD pages 21–23)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, franchisees are not explicitly obligated to open an Additional Office even if Counselor Realty consents to it. The FDD outlines the process for applying to open an Additional Office within the designated territory, which includes submitting a request with location details and paying a $750 fee. Counselor Realty then has 30 days to review the application and notify the franchisee of their decision.
While the document details the application process and Counselor Realty's approval process, it does not state that a franchisee is required to open the Additional Office if consent is granted. The language focuses on the franchisee's ability to apply and the franchisor's right to approve or deny the application. This suggests that the franchisee retains the discretion to proceed with opening the Additional Office after receiving consent.
However, if the franchisee does proceed with opening the Additional Office, it must comply with all requirements of the Franchise Agreement and current System standards. Furthermore, if Counselor Realty consents to any Additional Office locations, any sales agents operating out of any such Additional Office locations will be counted as part of the number of sales agents operating from the franchisee's Office for purposes of Section 1.3(a).