What must be negotiated between the franchisee and Counselor Realty for the successor term?
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, if a franchisee applies for a successor franchise term, they will need to negotiate a new minimum office sales agent requirement schedule with Counselor Realty. This negotiation is a condition for acquiring a successor franchise agreement.
This means that as the initial franchise term nears its end, the franchisee must engage with Counselor Realty to determine the minimum number of sales agents required to operate the office during the subsequent five-year term. The specific number will be subject to discussion and agreement between both parties.
It's important to note that the successor franchise agreement will be based on the form Counselor Realty is using at that time, which may differ from the original agreement. Additionally, the franchisee must not be in breach of the existing agreement and must meet certain conditions, such as upgrading and refurbishing the office to current system standards and paying all fees then being charged by Counselor Realty for new franchises.