Is the license granted by Counselor Realty exclusive or non-exclusive?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
undertakings herein, the parties agree:
1. FRANCHISE.
1.1 Grant.
- (a) We grant you a non-exclusive license to use the System and the Marks to operate one real estate brokerage business (the "Business") at a single site you select, and to which we consent (the "Office"), within the geographic territory designated in Exhibit A to this Franchise Agreement (the "Territory"). You must obtain Counselor's written consent prior to opening or operating any additional Office locations.
- (b) You may apply to open one or more additional offices within your designated Territory (an "Additional Office") by submitting a request to Counselor describing the location of such proposed Additional Office as well as any additional information Counselor may require or request, along with one-time fee of $750 for each Additional Office location (the "Additional Office Application Materials"). After Counselor's receipt of such Additional Office Application Materials (including the one-time fee), Counselor will have 30 days to review the Additional Office Application Materials and proposed Additional Office location and notify you whether or not Counselor consents to your opening of such Additional Office location. Any Additional Office we consent to must comply with all requirements of the Franchise Agreement and then-current System standards.
- (c) You may apply to open one or more additional offices outside of your designated Territory (an "Extension Office") by submitting a request to Counselor describing the location of such proposed Extension Office as well as any additional information Counselor may require or request, along with a one-time fee of $750 for each Extension Office location (the "Extension Office Application Materials"). After Counselor's receipt of such Extension Office Application Materials (including the one-time fee), Counselor will have 30 days to review the Extension Office Application Materials and proposed Extension Office location and notify you whether or not Counselor consents to your opening of such Extension Office location. Counselor's consent to any Extension Office location will be contingent on you and Counselor reaching a mutual agreement as to the minimum number of sales agents that will operate from the Extension Office. Any Extension Office we consent to must comply with all requirements of the Franchise Agreement and then-current System standards.
1.2 Site Selection. You must select a site for your Office within 180 days after you sign this Agreement. After you notify us of a proposed site for your Office, we will have 30 days to review the site and to notify you whether or not we consent to your operation of the Business at that site. If we reject the site you propose, you will have an additional 60 days to locate a site that is acceptable to us.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the franchise license granted is non-exclusive. Specifically, Counselor Realty grants the franchisee a non-exclusive license to use their system and marks to operate a real estate brokerage business at a single, approved site within a designated geographic territory. This means that Counselor Realty retains the right to operate or franchise other businesses using the Counselor Realty system within the same territory.
This non-exclusive arrangement has several implications for prospective franchisees. It means that Counselor Realty could potentially license another franchisee to operate nearby, creating direct competition. While the franchisee has a designated territory, the non-exclusivity means Counselor Realty is not restricted from establishing its own offices or licensing others in the same area. This differs from an exclusive license, where the franchisor agrees not to establish any competing outlets within the franchisee's territory.
Counselor Realty does allow franchisees to apply to open additional offices within their designated territory (Additional Offices) or outside of it (Extension Offices). Opening either type of additional office requires submitting a request to Counselor Realty, paying a one-time fee of $750 per location, and obtaining Counselor Realty's consent. For Extension Offices, Counselor Realty's consent is contingent on reaching a mutual agreement regarding the minimum number of sales agents that will operate from the Extension Office. It is important to note that if Counselor Realty consents to an Extension Office, the franchisee will not receive any territorial protections for that Extension Office, and Counselor Realty or other licensees may provide real estate brokerage services nearby.