Does Counselor Realty have to provide a reason if they deny an Extension Office application?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
ds.
You may apply to open one or more additional offices outside of your designated Territory (an "Extension Office") by submitting a request to Counselor describing the location of such proposed Extension Office as well as any additional information Counselor may require or request, along with a one-time fee of $750 for each Extension Office location (the "Extension Office Application Materials"). After Counselor's receipt of such Extension Office Application Materials (including the one-time fee), Counselor will have 30 days to review the Extension Office Application Materials and proposed Extension Office location and notify you whether or not Counselor consents to your opening of such Extension Office location. Counselor's consent to any Extension Office location will be contingent on you and Counselor reaching a mutual agreement as to the minimum number of sales agents that will operate from the Extension Office. Any Extension Office we consent to must comply with all requirements of the Franchise Agreement and then-current System standards.
Before you sign the Franchise Agreement, you and Counselor will negotiate a schedule for the minimum number of real estate sales agents who must operate from your Office. If you fail to satisfy the agreed-upon schedule, or to maintain the minimum required number of agents in the Office on an ongoing basis, you may lose the exclusive right to operate a "Counselor" office in the Territory, your Territory may be altered (as determined by Counselor in its sole discretion), or Counselor may terminate the Franchise Agreement. See below and Item 17.
You will not receive an exclusive territory. You may face competition from other franchisees or Franchisor-owned outlets, or from other channels of distribution.
Source: Item 12 — TERRITORY (FDD pages 21–23)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, if a franchisee wants to open an Extension Office, they must submit a request to Counselor Realty that includes the location of the proposed Extension Office and any other information Counselor Realty requires. The franchisee must also pay a one-time fee of $750 for each Extension Office location.
After Counselor Realty receives the Extension Office Application Materials and the fee, they have 30 days to review the application and notify the franchisee whether or not they consent to the opening of the Extension Office. The FDD does not state that Counselor Realty has to provide a reason for denying the application.
Counselor Realty's consent is contingent on the franchisee and Counselor Realty reaching a mutual agreement as to the minimum number of sales agents that will operate from the Extension Office. Any Extension Office that Counselor Realty consents to must comply with all requirements of the Franchise Agreement and then-current System standards. If the franchisee fails to maintain the minimum required number of sales agents in the Extension Office, Counselor Realty may elect to have the franchisee close the Extension Office or terminate the Franchise Agreement.