How long is the term of a successor franchise for Counselor Realty?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 Counselor Realty's 2025 Franchise Disclosure Document, a franchisee may acquire a single successor franchise for a term of five years. To be eligible, the franchisee must apply in writing between 60 and 180 days before the expiration of the initial term. Additionally, the franchisee must not be in breach of the Franchise Agreement or any related agreements at the time of the initial term's expiration.
The successor franchise agreement will be based on the form Counselor Realty is using at that time, which may differ from the original agreement. This successor agreement does not include any further renewal options. The terms of the successor franchise will include a newly negotiated minimum sales agent requirement for the office, agreed upon by the franchisee and Counselor Realty.
During the successor term, Counselor Realty may alter the franchisee's territory if the population has increased beyond the maximum allowed for a single franchise territory or if the franchisee failed to maintain the minimum number of agents during the prior term. The franchisee will also be required to pay all fees in the amounts then being charged by Counselor Realty for new franchises. Furthermore, the franchisee must complete reasonable upgrades and refurbishment of their office to meet the then-current system standards.