Are the initial fees paid to Counselor Realty generally refundable?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
When you sign the Franchise Agreement, you must pay Counselor an Initial Fee in an amount of: $7,500 if the population in your Territory is less than 10,000, or $15,000 if the population in your Territory is 10,000 or more. See Item 12.
You are responsible to select a site for your Office. After you notify Counselor of a proposed site, Counselor has 30 days to review the site and to notify you whether or not it consents to your operation of the Business at that site. If Counselor rejects the site you propose, you will have an additional 60 days to locate a site that is acceptable to Counselor. If you fail to do so, the Franchise Agreement will terminate and Counselor will refund your Initial Fee, less Counselor's expenses associated with reviewing the proposed site(s). See Item 12. Except as described in this paragraph, Initial Fees are nonrefundable.
Source: Item 5 — INITIAL FEES (FDD page 9)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the initial franchise fee, ranging from $7,500 to $15,000 depending on the territory's population, is generally nonrefundable. This means that once paid, the franchisee typically cannot get this money back.
However, there is a specific circumstance under which a refund is possible. If Counselor Realty rejects the franchisee's proposed site for their office, the franchisee has an additional 60 days to find an acceptable location. If they fail to do so within this timeframe, the Franchise Agreement will terminate, and Counselor Realty will refund the initial fee, but will deduct any expenses Counselor Realty incurred while reviewing the proposed sites.
In summary, while the initial fee is typically nonrefundable, a franchisee can receive a refund (minus expenses) if the franchisor rejects the proposed site and the franchisee cannot find an alternative acceptable site within the specified time frame. This is a critical point for prospective franchisees to understand, as site selection plays a significant role in the refund eligibility.