How many Counselor Realty franchised outlets were there as of December 31, 2022?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
training programs from time to time.
There were no new franchises sold in 2024, 2023, or 2022. There were no franchise renewals in 2024, 2023 or 2022. No franchise renewal fees are required. There were five franchised outlets as of December 31, 2024 and 2023. There were seven franchise outlets as of December 31, 2022. One franchise agreement expired in March 2023 and was not renewed. One franchise agreement expired in December 2022 and was not renewed. Initial franchise fees are typically $7,500 to $15,000 per franchise, as determined by the population of the franchise territory. The franchisee agrees to pay a base monthly fee covering up to five licensed agents and additional monthly fees per licensed agent above five operating from or through their office. The monthly franchise fee revenue was $57,634, $63,751 and $73,235 for the years ended December 31, 2024, 2023 and 2022, respectively. If the franchisee is located within the 11-county metropolitan area of the Twin Cities, there is a monthly metro advertising fee per licensed agent. The agreement term is five years b
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, as of December 31, 2022, there were seven franchised outlets. This number decreased in the following years, with only five franchised outlets remaining as of December 31, 2023, and December 31, 2024. The document specifies that one franchise agreement expired in December 2022 and was not renewed, contributing to the decrease in subsequent years.
This information is crucial for potential franchisees as it provides a snapshot of the franchise system's size and its recent trajectory. The decrease in the number of outlets could signal challenges within the franchise network, such as difficulties in maintaining franchisee relationships or a lack of profitability for franchisees. It is important to note that no new franchises were sold in 2022, 2023, or 2024, which could also contribute to the decline in outlet numbers.
A prospective franchisee should investigate the reasons behind the decrease in franchised outlets. Understanding why franchise agreements were not renewed and why no new franchises were sold can provide valuable insights into the health and stability of the Counselor Realty franchise system. This information can help a potential franchisee assess the risks and opportunities associated with investing in a Counselor Realty franchise.
Furthermore, the FDD mentions that the monthly franchise fee revenue was $73,235 for the year ended December 31, 2022. This figure, along with the number of franchised outlets, can be used to estimate the average revenue generated per franchise. However, it's important to consider that this is just an average, and individual franchise performance may vary significantly.