Is Counselor Realty required to provide a reason if they reject a proposed site?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
You are responsible to select a site for your Office. After you notify Counselor of a proposed site, Counselor has 30 days to review the site and to notify you whether or not it consents to your operation of the Business at that site. If Counselor rejects the site you propose, you will have an additional 60 days to locate a site that is acceptable to Counselor. If you fail to do so, the Franchise Agreement will terminate and Counselor will refund your Initial Fee, less Counselor's expenses associated with reviewing the proposed site(s). See Item 12. Except as described in this paragraph, Initial Fees are nonrefundable.
Source: Item 5 — INITIAL FEES (FDD page 9)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the company is not required to provide a reason for rejecting a proposed site. The FDD states that after a franchisee notifies Counselor Realty of a proposed site for their office, Counselor Realty has 30 days to review the site and notify the franchisee whether or not they consent to the operation of the business at that site.
If Counselor Realty rejects the proposed site, the franchisee has an additional 60 days to locate a site that is acceptable to them. If the franchisee fails to do so, the Franchise Agreement will automatically terminate, and Counselor Realty will refund the initial franchise fee, less their expenses associated with reviewing the proposed site(s).
This lack of requirement to provide a reason for rejection is important for prospective franchisees to consider. It means that Counselor Realty has broad discretion in site selection, and a franchisee may need to find alternative locations without knowing the specific reasons for the initial rejection. This could potentially lead to delays and additional expenses for the franchisee.