Regarding site selection and acquisition/lease for a Counselor Realty franchise, which sections of the Franchise Agreement apply?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
rements of the Franchise Agreement and then-current System standards.
1.2 Site Selection. You must select a site for your Office within 180 days after you sign this Agreement. After you notify us of a proposed site for your Office, we will have 30 days to review the site and to notify you whether or not we consent to your operation of the Business at that site. If we reject the site you propose, you will have an additional 60 days to locate a site that is acceptable to us. If you fail to do so, this Agreement will automatically terminate and we will refund your Initial Franchise Fee, less our expenses associated with reviewing the proposed site(s). After we consent to an Office site you propose (if at all), you must open your Business at that site within six months. If you fail to do so, this Agreement will automatically terminate and your Initial Franchise Fee will not be refunded. We may, in our sole discretion, grant extensions of the deadlines described above. Our consent to a site is not a guarantee or assurance as to the availability, suitability or prospects of an Office or Business.
1.3 Territory.
- (a) While this Agreement is in effect, as long as you satisfy and maintain the minimum Office sales agent requirements set forth in Exhibit A to this Franchise Agreement, we will not ourselves establish or operate a "Counselor" office, or license another to establish or operate a "Counselor" office within the Territory. However, both we and other "Counselor" licensees may enter into, and provide residential and commercial real estate brokerage services within, the Territory;
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 16–17)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, several sections of the Franchise Agreement pertain to site selection. Section 1.2 outlines the franchisee's responsibility to select a site within 180 days of signing the agreement. Counselor Realty then has 30 days to review the proposed site. If the site is rejected, the franchisee has an additional 60 days to find an acceptable location. Failure to secure an approved site within this timeframe can lead to termination of the agreement and a partial refund of the initial franchise fee, minus expenses incurred by Counselor Realty for the site review.
After Counselor Realty approves a site, the franchisee must open their Counselor Realty business within six months. Failure to do so results in the termination of the Franchise Agreement and forfeiture of the initial franchise fee. However, Counselor Realty retains the discretion to grant extensions to these deadlines. It is important to note that Counselor Realty's approval of a site does not guarantee its availability, suitability, or the future success of the business.
Furthermore, Section 1.1(a) states that the franchise is granted for a single site selected by the franchisee and approved by Counselor Realty. The franchisee must obtain written consent from Counselor Realty before opening or operating any additional office locations. This consent process ensures that all locations meet the brand's standards and strategic objectives. These stipulations underscore the importance of thorough due diligence and communication with Counselor Realty during the site selection process.