What are the obligations of Counselor Realty franchisees regarding the payment of fees?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
subsidiary of Counselor Holding, Inc.
The franchise agreement includes the following:
- The Company agrees to grant franchisees the use of its Systems and Marks to operate a real estate brokerage business.
- The franchisee agrees to pay an initial fee, monthly franchise fees and metro advertising fees when applicable.
- The Company agrees to provide an initial training program and may offer additional 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, franchisees are obligated to pay several fees. These include an initial franchise fee, which typically ranges from $7,500 to $15,000, depending on the population of the franchise territory. Franchisees also must pay ongoing monthly franchise fees.
The monthly franchise fee covers up to five licensed agents. Franchisees pay additional monthly fees for each licensed agent exceeding five who operate from or through their office. If a Counselor Realty franchise is located within the 11-county metropolitan area of the Twin Cities, they are also required to pay a monthly metro advertising fee per licensed agent.
The financial statements show that Counselor Realty collected $57,634 in monthly franchise fees in 2024, $63,751 in 2023, and $73,235 in 2022. Monthly metro advertising fees totaled $3,480 in 2024, $2,880 in 2023, and $3,600 in 2022. These figures provide insight into the revenue generated from these fees across the Counselor Realty system.