Does the refurbishment requirement for Counselor Realty apply to Additional and Extension Offices?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
onsent prior to opening or operating any additional Office locations.
- (b) You may apply to open one or more additional offices within your designated Territory (an "Additional Office") by submitting a request to Counselor describing the location of such proposed Additional Office as well as any additional information Counselor may require or request, along with one-time fee of $750 for each Additional Office location (the "Additional Office Application Materials"). After Counselor's receipt of such Additional Office Application Materials (including the one-time fee), Counselor will have 30 days to review the Additional Office Application Materials and proposed Additional Office location and notify you whether or not Counselor consents to your opening of such Additional Office location. Any Additional Office we consent to must comply with all requirements of the Franchise Agreement and then-current System standards.
- (c) 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.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
Based on the 2025 Counselor Realty Franchise Disclosure Document, if Counselor Realty elects to have a franchisee close an Extension Office, the franchisee must remove all distinctive inventory, trade dress, and leasehold improvements at such Extension Office to eliminate any similarity in design, structure, signage, trade dress, decor, color, or layout to the distinctive appearance of other Counselor Realty businesses. This requirement ensures that the closed Extension Office does not continue to represent or resemble a Counselor Realty franchise after its closure.
For Additional Offices, the FDD states that any Additional Office Counselor Realty consents to must comply with all requirements of the Franchise Agreement and then-current System standards. This implies that Additional Offices are subject to the same standards and requirements as the primary franchised office, which would include any refurbishment requirements.
Therefore, while the FDD explicitly mentions the removal of distinctive elements upon the closure of an Extension Office, it also indicates that Additional Offices must comply with all franchise agreement requirements, suggesting that refurbishment requirements would apply to both Additional and Extension Offices during their operation. A prospective franchisee should clarify with Counselor Realty the specific refurbishment obligations for both types of offices to fully understand the financial and operational commitments involved.