What page of the Counselor Realty Franchise Agreement discusses the term of the agreement?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
3. TERM.
- 3.1 Term. The initial term of this Agreement begins on the Effective Date of this Agreement and ends five years from the Effective Date.
- 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 the 2025 Counselor Realty Franchise Disclosure Document, the term of the franchise agreement is discussed in Item 22, specifically under section 3, labeled 'TERM.' This section outlines the initial term of the agreement, which begins on the effective date and lasts for five years.
Furthermore, the document details the possibility of acquiring a successor franchise. A franchisee can apply in writing between 60 and 180 days before the initial term expires, and if they are not in breach of the agreement, they may be granted a single successor franchise for an additional five years. This successor agreement will use the then-current Counselor Realty Franchise Agreement form, which may differ from the original agreement, and does not include any further renewal options.
It's important to note that the terms of the successor franchise agreement may include a new minimum office sales agent requirement schedule negotiated between the franchisee and Counselor Realty. Additionally, upon renewal, Counselor Realty may alter the territory if the population has increased beyond the maximum allowed or if the franchisee failed to maintain the minimum number of agents during the prior term. The franchisee will also be responsible for paying all fees in the amount then being charged for new franchises and completing upgrades and refurbishment of the office to meet current system standards.