Do the inspection rights of Counselor Realty extend to Extension Offices?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to satisfy and maintain the minimum required number of sales agents in the Extension Office on an ongoing basis, Counselor may (in its sole discretion) elect to have you close the Extension Office or terminate the Franchise Agreement.
If Counselor elects to have you close the Extension Office, (i) you must (A) stop using the Marks and System, any materials containing or depicting the Marks or System, and any other name or mark confusingly similar to the Marks, including domain names, in connection with such Extension Office, (B) pay all sums due to Counselor or its affiliates with respect to such Extension Office, and (C) remove all distinctive inventory, trade dress, and leasehold improvements at such Extension Office to eliminate any similarity in design, structure, signage, trade dress, decor, color or layout to the distinctive appearance of other Counselor businesses, (ii) Counselor or its affiliate may access and remove any confidential or proprietary information and materials, either at the Extension Office or remotely by electronic means, and (iii) Counselor will no longer list such Extension Office (or any sales agents operating from such Extension Office) on its website.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Counselor Realty retains specific rights regarding Extension Offices, particularly if a franchisee fails to meet certain operational standards. If a franchisee does not maintain the minimum required number of sales agents in an Extension Office, Counselor Realty has the discretion to require the franchisee to close that Extension Office or even terminate the entire Franchise Agreement.
Should Counselor Realty elect to have the franchisee close the Extension Office, the franchisee must cease using Counselor Realty's Marks and System, remove all branded materials, and pay all outstanding dues. Counselor Realty or its affiliates can then access and remove any confidential or proprietary information, either physically from the Extension Office or remotely through electronic means. Additionally, Counselor Realty will remove the Extension Office from its website listings.
These stipulations highlight the importance of maintaining the agreed-upon operational standards for Extension Offices. The franchisee risks losing the Extension Office and potentially the entire franchise if they fail to meet the minimum sales agent requirements. This underscores the need for careful planning and resource allocation when considering opening an Extension Office with Counselor Realty.