What is the role of the 'Regional Advertising Committee' in relation to the Advertising Fees for Counselor Realty?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
ional Office or Extension Office) is located outside the Twin Cities. If your Office (or any Additional Office 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. The amount of your Advertising Fees for the Regional Advertising Group may be increased during the term of this Agreement by a majority vote of the "Regiona
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the Regional Advertising Committee plays a role in setting the advertising fees for franchisees located outside the Twin Cities metropolitan area. Specifically, if a Counselor Realty office is located outside of the 11-county Twin Cities area, the franchisee must be a member of the Regional Advertising Group, once established. They are then required to pay an Advertising Fee of $25 per agent per month to the Regional Advertising Fund for each agent operating out of their office.
The key responsibility of the Regional Advertising Committee is that it has the authority to increase the amount of these advertising fees during the term of the Franchise Agreement. This increase requires a majority vote by the Regional Advertising Committee, giving the committee direct control over a portion of the franchisee's ongoing expenses.
This arrangement means that franchisees outside the Twin Cities area are subject to advertising fee increases determined not solely by Counselor Realty, but also by a committee of their peers. This could be seen as both a benefit and a risk. It gives franchisees a voice in advertising expenditures but also subjects them to potential fee increases they may not agree with. Prospective franchisees should inquire about the structure and voting procedures of the Regional Advertising Committee to understand how these decisions are made and what influence they might have.