What is the obligation of the franchisee regarding site selection for Counselor Realty?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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. If you fail to do so, this Agreement will automatically terminate and we will refund your Initial Franchise Fee, less our expenses associated with reviewing the proposed site(s). After we consent to an Office site you propose (if at all), you must open your Business at that site within six months. If you fail to do so, this Agreement will automatically terminate and your Initial Franchise Fee will not be refunded. We may, in our sole discretion, grant extensions of the deadlines described above. Our consent to a site is not a guarantee or assurance as to the availability, suitability or prospects of an Office or Business.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the franchisee is responsible for selecting a site for their office. This selection must occur within 180 days of signing the Franchise Agreement. Once a site is proposed, Counselor Realty has 30 days to review and either approve or reject the site.
If Counselor Realty rejects the initial site, the franchisee has an additional 60 days to find an alternative location that meets Counselor Realty's approval. Failure to secure an approved site within this extended timeframe results in automatic termination of the agreement. In such a case, the initial franchise fee will be refunded, minus any expenses Counselor Realty incurred while reviewing the proposed sites.
Upon Counselor Realty's approval of a site, the franchisee must open their Counselor Realty business at that location within six months. Failure to do so also results in automatic termination of the agreement, and in this scenario, the initial franchise fee is not refunded. Counselor Realty may, at its discretion, grant extensions to these deadlines. However, it's important to note that Counselor Realty's approval of a site does not guarantee its availability, suitability, or the future success of the business at that location.
This site selection process highlights the importance of thorough due diligence and communication between the franchisee and Counselor Realty. Franchisees should carefully consider potential locations and understand that the franchisor's approval is required, but does not ensure success.