How will Counselor Realty provide notice of a Territory Opportunity to the franchisee?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
If Counselor has consented to any Extension Office, you will not receive any territorial protections with respect to such Extension Office.
Both Counselor and other "Counselor" licensees may provide residential and commercial real estate brokerage services anywhere near such
Extension Office. In addition, Counselor may itself establish or operate a "Counselor" office, or license another to establish or operate a "Counselor" office, anywhere near such Extension Office; provided, however, that if Counselor proposes to license another to establish or operate a "Counselor Office" with a territory that would include the location where such Extension Office is located (a "Territory Opportunity"), we will provide you with a right of first refusal for such Territory Opportunity on the following terms:
- (i) we will provide you with written notice of a Territory Opportunity, and you will have 30 days to advise us in writing that you wish to participate in the Territory Opportunity;
- (ii) if you do not notify us within such period, then we may pursue such Territory Opportunity and/or grant any other person or entity the right to participate in such Territory Opportunity without any liability to you; and
- (iii) if you timely notify us in writing that you wish to participate in the Territory Opportunity, then we may condition your participation on compliance with such terms and conditions as we consider appropriate to the particular Territory Opportunity, including: (i) execution of such franchise agreement and related agreements as are then generally used by us in connection with the award of the applicable Territory Opportunity; (ii) timely payment of all initial fees and any other fees charged by us or our affiliate in connection with the award or grant of the applicable Territory Opportunity; and (iii) meeting our then-current eligibility requirements applied by us to candidates for such Territory Opportunity.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, if Counselor Realty intends to license another party to establish a Counselor Realty office with a territory that includes the location of a franchisee's Extension Office, they will provide the franchisee with a right of first refusal for that Territory Opportunity. Counselor Realty will provide written notice of the Territory Opportunity to the franchisee.
Upon receiving written notice from Counselor Realty, the franchisee has 30 days to inform Counselor Realty in writing if they wish to participate in the Territory Opportunity. If the franchisee does not provide notification within this 30-day period, Counselor Realty is free to pursue the Territory Opportunity independently or grant the right to another party without any obligation to the existing franchisee.
If the franchisee expresses interest in writing within the specified timeframe, Counselor Realty may set terms and conditions for their participation. These conditions can include the execution of franchise agreements and related documents that Counselor Realty typically uses for such opportunities, timely payment of initial fees and other charges, and meeting the eligibility requirements that Counselor Realty currently applies to candidates for the Territory Opportunity.