What is the length of the initial term for a Counselor Realty franchise agreement?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
3. TERM.
- 3.1 Term. The initial term of this Agreement begins on the Effective Date of this Agreement and ends five years from the Effective Date.
- 3.2 Successor Franchise. If you apply in writing between 60 and 180 days before expiration of the initial term and are not in breach of this Agreement (or any related agreement) at the expiration of the initial term, you may acquire a single successor franchise for five years, using the form of Counselor Franchise Agreement we are then using (which may differ from this Agreement), but without further renewal. Your Franchise Agreement for the successor term, if any, will include a new minimum Office sales agent requirement schedule negotiated by you and Counselor. Upon renewal of your franchise and during the successor term, if any, (i) your Territory may be altered if the population in your Territory has increased to exceed the maximum population then allowed by Counselor for a single franchise territory or if you failed to maintain the minimum number of agents during the prior term, and (ii) you must pay all fees in the amount then being charged by Counselor for new franchises. You also must first complete reasonable upgrading and refurbishment of your Office (including any Additional Offices and Extension Offices, if applicable) to then-current System standards.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, the initial term of the franchise agreement is five years, beginning on the effective date of the agreement. This means a franchisee commits to operating their Counselor Realty franchise for this duration, adhering to the terms and conditions outlined in the agreement.
At the end of the initial term, a franchisee has the option to apply for a successor franchise. To be eligible, the franchisee must apply in writing between 60 and 180 days before the initial term expires and must not be in breach of the franchise agreement or any related agreements. If approved, the successor franchise is also for five years, but it will be based on the then-current Counselor Realty franchise agreement, which may differ from the original agreement.
It is important to note that the terms of the successor franchise may include a new minimum sales agent requirement schedule, which will be negotiated between the franchisee and Counselor Realty. Additionally, Counselor Realty may alter the franchisee's territory if the population has increased beyond the maximum allowed or if the franchisee failed to maintain the minimum number of agents during the initial term. The franchisee will also be responsible for paying all fees in the amount then being charged by Counselor Realty for new franchises and must complete any required upgrades and refurbishment of the office to meet the current system standards.