What is included in the estimate of expenses for the initial start-up period for a Counselor Realty franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
NT**
| (1) Type of Expenditure | (2) Amount | (3) Method of Payment | (4) When Due | (5) To Whom Payment is to be Made | |
|---|---|---|---|---|---|
| Initial Fee (see Item 5) | $7,500 to $15,000 | Lump sum | When you sign Franchise Agreement | Counselor | |
| Real Estate Lease and ImprovementsA | $600 to $12,500 | (See Note A) | (See Note A) | (See Note A) | |
| (1) Type of Expenditure | (2) Amount | (3) Method of Payment | (4) When Due | (5) To Whom Payment is to be Made | |
| Fixtures and | $1,000 to | As incurred | Before | Vendors | |
| FurnishingsB | $15,000 | opening | |||
| Opening Inventory of SuppliesC | $500 to $1,000 | Lump sum | Before opening | Vendors | |
| InsuranceD | $1,500 to | Lump sum | Before | Insurance | |
| $6,000 | opening | Carriers | |||
| Training Costs (see Item 6) | $0 to $6,200 | As incurred | As billed (for those paid to Counselor); otherwise, as incurred | Counselor, Vendors | |
| Internet | $750 to $4,000 | As incurred | As billed | Vendors | |
| DevelopmentE | |||||
| SignageF | $1,000 to | As incurred | Before | Approved | |
| $10,000 | opening | Vendors | |||
| Professional | $0 to $6,000 | As incurred | Before | Attorneys, | |
| FeesG | opening | Accountants | |||
| Additional Funds (for three months' operations)H | $10,000 to $30,000 | As incurred | As incurred | Counselor, Vendor, Employees, Suppliers, Utilities | |
| Total | $22,850 to $105,700I | ______________________________ |
Notes to Item 7, above:
- A. Counselor estimates that you will need at least 800, but not more than 6,000, square feet of commercial space to operate your Business, depending on the number of agents you wish to employ.
Source: Item 7 — INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the estimated initial investment includes expenses for an arbitrary initial start-up period of three months. These expenses include the initial franchise fee ($7,500 to $15,000), real estate lease and improvements ($600 to $12,500), fixtures and furnishings ($1,000 to $15,000), opening inventory of supplies ($500 to $1,000), insurance ($1,500 to $6,000), training costs ($0 to $6,200), internet development ($750 to $4,000), signage ($1,000 to $10,000), professional fees ($0 to $6,000), and additional funds for three months' operations ($10,000 to $30,000). The total estimated initial investment ranges from $22,850 to $105,700. These are only estimates, and Counselor Realty does not guarantee that franchisees will not have additional expenses.
The costs for real estate will vary significantly depending on whether the franchisee purchases or leases the office space. Counselor Realty estimates that a franchisee will need 800 to 6,000 square feet of commercial space, depending on the number of agents they wish to employ. If leasing, the cost could range from $10 to $35 per square foot per year or more, including improvements. The cost of furniture and equipment ranges from $1,000 to $15,000, depending on the amount and type selected.
Insurance costs are estimated between $1,500 and $6,000 per year for the required general liability and errors and omissions coverage. Website development costs will vary based on the size of the office, territory, and content required, as well as the cost to purchase IDX or similar shared listing content. Signage costs are estimated between $1,000 and $10,000, but can vary significantly depending on the type and size of signage selected and local ordinances. Professional fees for attorneys or accountants could reach $6,000 or more.
The additional funds for three months' operations cover payroll and other operating expenses. These figures are estimates, and actual costs will depend on factors such as adherence to Counselor Realty's methods, management skill, economic conditions, wage rates, and competition. Franchisees should note that these estimates do not guarantee the business will be successful or profitable within this period or at any time.