Does Minnesota law apply to all Counselor Realty franchisees, regardless of location?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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If your Office (including any Additional Officer or Extension Office) is located within the 11 county metropolitan area of the Twin Cities of Minneapolis and St. Paul, Minnesota (including the Counties of Scott, Wright, Isanti, Dakota, Anoka, Hennepin, Washington, Carver, Ramsey, Sherburne and Chisago, the "Twin Cities"), you must pay to Counselor an Advertising Fee equal to $60 per agent per month for each agent operating out of the Office, Additional Office or Extension Office located in such metropolitan area, as a contribution towards the general costs of marketing activities conducted by Counselor. "Counselor" offices owned and operated by Counselor contribute toward the general costs of marketing activities conducted by Counselor under a different formula, and are not required to pay the specific Advertising Fee described above. The amount of the monthly Advertising Fee may be increased during the term of the franchise by Counselor from time to time in its sole discretion.
We reserve the right to establish and organize a "Regional Advertising Group" if your Office (including any Additional Officer or Extension Office) is located outside the Twin Cities.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 25–29)
What This Means (2025 FDD)
According to the 2025 Counselor Realty FDD, while the franchise is based in Minnesota, the applicability of Minnesota law to all franchisees regardless of location is not explicitly stated. However, the FDD does specify certain instances where Minnesota law and regulations are relevant to franchisees, particularly those operating within the 11-county metropolitan area of the Twin Cities of Minneapolis and St. Paul, Minnesota.
Specifically, franchisees with office locations in the Twin Cities area (including the Counties of Scott, Wright, Isanti, Dakota, Anoka, Hennepin, Washington, Carver, Ramsey, Sherburne and Chisago) are required to participate in certain programs that appear to be specific to Minnesota. For example, these franchisees must pay a Mobile App Fee and participate in Counselor System advertising programs, paying an Advertising Fee of $60 per agent per month.
Outside of the Twin Cities area, Counselor Realty reserves the right to establish a Regional Advertising Group, in which case franchisees must pay an Advertising Fee of $25 per agent per month. Additionally, all franchisees, regardless of location, must operate their businesses in accordance with all applicable local, state, and federal laws and regulations, and must maintain a bona fide real estate broker's license in good standing under the laws of the state where their business is located. This suggests that while some aspects of the franchise operation are governed by Minnesota-specific rules, franchisees are primarily subject to the laws of the state in which they operate.