What is the purpose of the Counselor Realty Advertising Fee?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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You must participate in Counselor System advertising programs.
If your Office (including any Additional Officer or Extension Office) is located within the 11 county metropolitan area of the Twin Cities of Minneapolis and St. Paul, Minnesota (including the Counties of Scott, Wright, Isanti, Dakota, Anoka, Hennepin, Washington, Carver, Ramsey, Sherburne and Chisago, the "Twin Cities"), you must pay to Counselor an Advertising Fee equal to $60 per agent per month for each agent operating out of the Office, Additional Office or Extension Office located in such metropolitan area, as a contribution towards the general costs of marketing activities conducted by Counselor. "Counselor" offices owned and operated by Counselor contribute toward the general costs of marketing activities conducted by Counselor under a different formula, and are not required to pay the specific Advertising Fee described above. The amount of the monthly Advertising Fee may be increased during the term of the franchise by Counselor from time to time in its sole discretion.
We reserve the right to establish and organize a "Regional Advertising Group" if your Office (including any Additional Officer or Extension Office) is located outside the Twin Cities. If your Office (including any Additional Officer or Extension Office) is located outside the Twin Cities, you must be a member of the "Regional Advertising Group" (once established) and pay to the "Regional Advertising Fund" an Advertising Fee equal to $25 per agent per month for each agent operating out of the Office, Additional Office or Extension Office located in such geographical area. "Counselor" offices owned and operated by Counselor contribute toward the general costs of marketing activities conducted by Counselor under a different formula, and will not be required to pay the specific Advertising Fee described above to the Regional Advertising Fund. Activities of the Regional Advertising Group will be coordinated, and the Regional Advertising Fund will be administered by the Regional Advertising Committee, which will consist of one representative from each franchisee-owned "Counselor" office outside the Twin Cities, and three representatives of Counselor. The amount of monthly Advertising Fees for the Regional Advertising Group may be increased during the term of the franchise by a majority vote of that Regional Advertising Committee.
The Regional Advertising Group, administered by its Advertising Committee, will conduct its own marketing activities in the manner it deems most appropriate, and make its own decisions regarding creative work, media purchases, scope of advertising, and other matters. Upon your request, your Regional Advertising Committee will provide you annually a summary of receipts
and expenditures of your Regional Advertising Group, including the Regional Advertising Committee's administrative expenses (if any).
Counselor conducts various marketing activities periodically, including research, creative work, media purchasing, tracking, public relations, promotions, and advertising. You may (but are not required to) purchase promotional materials prepared by or for Counselor, at prices periodically established by Counselor, for use in your Business. Counselor may use in-house, affiliated, or outside advertising agencies. Advertising may be in print, on radio and/or television and/or Internet or other computer related media, and generally is local or regional in sc
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 17–21)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, franchisees are required to participate in advertising programs. If a Counselor Realty office is located within the 11-county metropolitan area of the Twin Cities of Minneapolis and St. Paul, Minnesota, the franchisee must pay an Advertising Fee of $60 per agent per month. This fee contributes to the general marketing costs incurred by Counselor Realty. Counselor Realty offices that are owned and operated by the company itself contribute to these marketing costs under a different formula and are not required to pay this specific Advertising Fee. The amount of the monthly Advertising Fee may be increased at any time during the franchise term at Counselor Realty's discretion.
For offices located outside the Twin Cities area, Counselor Realty reserves the right to establish a Regional Advertising Group. If such a group is established, franchisees must become members and pay an Advertising Fee of $25 per agent per month to the Regional Advertising Fund. Similar to the Twin Cities arrangement, company-owned Counselor Realty offices contribute to marketing costs differently and are exempt from paying this specific fee to the Regional Advertising Fund. The Regional Advertising Group's activities are coordinated and the fund is administered by a Regional Advertising Committee, which includes franchisee representatives and three representatives from Counselor Realty. This committee can increase the monthly Advertising Fees with a majority vote.
The Regional Advertising Group, managed by its Advertising Committee, has the autonomy to conduct marketing activities as it sees fit, making decisions on creative work, media purchases, and the scope of advertising. Annually, the Regional Advertising Committee will provide a summary of receipts and expenditures, including any administrative expenses, upon request. Counselor Realty also conducts various marketing activities, including research, creative work, media purchasing, public relations, promotions, and advertising. Franchisees have the option to purchase promotional materials prepared by or for Counselor Realty at prices set by the company. Advertising may be in print, on radio, television, the Internet, or other computer-related media, and is generally local or regional in scope.