How are payments for real estate lease and improvements made for a Counselor Realty franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) Type of Expenditure | (2) Amount | (3) Method of Payment | (4) When Due | (5) To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Fee (see Item 5) | $7,500 to $15,000 | Lump sum | When you sign Franchise Agreement | Counselor |
| Real Estate Lease and ImprovementsA | $600 to $12,500 | (See Note A) | (See Note A) | (See Note A) |
Notes to Item 7, above:
- A. Counselor estimates that you will need at least 800, but not more than 6,000, square feet of commercial space to operate your Business, depending on the number of agents you wish to employ. If you do not already own or lease the required space, you are responsible for locating and acquiring the space for your Office (subject to Counselor's consent to the site). The cost to purchase or lease real estate varies widely between locations. If you purchase your Office space, your cost will depend on the size and location of the space and the type of improvements you choose to make. If you lease Office space, we estimate that your cost (including improvements) could range from $10 per square foot per year to $35 per square foot per year or more. You are responsible at your cost for all zoning and land use permitting requirements.
Source: Item 7 — INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the estimated cost for real estate lease and improvements ranges from $600 to $12,500. The method of payment, when it is due, and to whom the payment is made will vary (See Note A). Note A clarifies that Counselor Realty estimates franchisees will need 800 to 6,000 square feet of commercial space, depending on the number of agents. The franchisee is responsible for finding and acquiring the space, subject to Counselor Realty's approval.
The cost to purchase or lease varies widely by location. If purchasing, the cost depends on size, location, and improvements. If leasing, the estimated cost, including improvements, ranges from $10 to $35 or more per square foot per year. The franchisee is responsible for all zoning and land use permitting requirements.
This means a prospective Counselor Realty franchisee needs to budget for securing office space, with costs heavily dependent on location and size. The wide range in estimated costs, from $600 to $12,500, highlights the importance of thorough market research and careful consideration of the number of agents the franchisee plans to employ. The franchisee should also factor in potential zoning and permitting expenses, as well as Counselor Realty's approval process for the chosen site.