If a Counselor Realty franchisee's territory is altered, who determines the alteration?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
ds.
Before you sign the Franchise Agreement, you and Counselor will negotiate a schedule for the minimum number of real estate sales agents who must operate from your Office. If you fail to satisfy the agreed-upon schedule, or to maintain the minimum required number of agents in the Office on an ongoing basis, you may lose the exclusive right to operate a "Counselor" office in the Territory, your Territory may be altered (as determined by Counselor in its sole discretion), or Counselor may terminate the Franchise Agreement. See below and Item 17.
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.
Source: Item 12 — TERRITORY (FDD pages 21–23)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, Counselor Realty has the authority to alter a franchisee's territory under specific circumstances. If a franchisee fails to meet the agreed-upon schedule or maintain the minimum required number of agents in their office, Counselor Realty has the sole discretion to alter the territory. This condition is put in place to ensure that franchisees are actively managing and growing their business in accordance with the franchise agreement.
Additionally, upon renewal of the franchise, Counselor Realty may alter the territory if the population within the territory has increased beyond the maximum allowed for a single franchise or if the franchisee failed to maintain the minimum required number of agents during the prior term. This provision allows Counselor Realty to adjust territories to reflect changes in market conditions and ensure optimal coverage.
These stipulations highlight the importance of meeting performance expectations and adapting to changing demographics. For a prospective franchisee, it is crucial to understand the minimum agent requirements and growth expectations for their territory to avoid potential alterations. It is also important to consider the potential for population growth in the territory and its impact on the franchise agreement upon renewal.