Can Counselor Realty increase the amount of the monthly Advertising Fee during the franchise term?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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If your Office (including any Additional Officer or Extension Office) is located within the 11 county metropolitan area of the Twin Cities of Minneapolis and St. Paul, Minnesota (including the Counties of Scott, Wright, Isanti, Dakota, Anoka, Hennepin, Washington, Carver, Ramsey, Sherburne and Chisago, the "Twin Cities"), you must pay to Counselor an Advertising Fee equal to $60 per agent per month for each agent operating out of the Office, Additional Office or Extension Office located in such metropolitan area, as a contribution towards the general costs of marketing activities conducted by Counselor. "Counselor" offices owned and operated by Counselor contribute toward the general costs of marketing activities conducted by Counselor under a different formula, and are not required to pay the specific Advertising Fee described above. The amount of the monthly Advertising Fee may be increased during the term of the franchise by Counselor from time to time in its sole discretion.
We reserve the right to establish and organize a "Regional Advertising Group" if your Office (including any Additional Officer or Extension Office) is located outside the Twin Cities. If your Office (including any Additional Officer or Extension Office) is located outside the Twin Cities, you must be a member of the "Regional Advertising Group" (once established) and pay to the "Regional Advertising Fund" an Advertising Fee equal to $25 per agent per month for each agent operating out of the Office, Additional Office or Extension Office located in such geographical area. "Counselor" offices owned and operated by Counselor contribute toward the general costs of marketing activities conducted by Counselor under a different formula, and will not be required to pay the specific Advertising Fee described above to the Regional Advertising Fund. Activities of the Regional Advertising Group will be coordinated, and the Regional Advertising Fund will be administered by the Regional Advertising Committee, which will consist of one representative from each franchisee-owned "Counselor" office outside the Twin Cities, and three representatives of Counselor. The amount of monthly Advertising Fees for the Regional Advertising Group may be increased during the term of the franchise by a majority vote of that Regional Advertising Commit
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 17–21)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the ability to increase the monthly Advertising Fee depends on the franchisee's location. For offices within the 11-county Twin Cities metropolitan area, Counselor Realty has the sole discretion to increase the $60 per agent per month Advertising Fee during the franchise term. This fee contributes to the general marketing activities conducted by Counselor Realty.
For offices located outside the Twin Cities area, franchisees must participate in a Regional Advertising Group and pay an Advertising Fee of $25 per agent per month to the Regional Advertising Fund. In this case, increases to the monthly Advertising Fees are determined by a majority vote of the Regional Advertising Committee, which includes franchisee representatives and three representatives from Counselor Realty.
This distinction is important for prospective franchisees as it highlights different levels of control over advertising expenses based on location. Franchisees in the Twin Cities area face the risk of unilateral fee increases by Counselor Realty, while those outside the area have a voice in the decision-making process through the Regional Advertising Committee. It is also important to note that Counselor Realty-owned offices contribute to marketing activities under a different formula and are not subject to these specific Advertising Fees.