Which section of the Counselor Realty Franchise Agreement addresses renewal of the franchise agreement?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2 Successor Franchise. If you apply in writing between 60 and 180 days before expiration of the initial term and are not in breach of this Agreement (or any related agreement) at the expiration of the initial term, you may acquire a single successor franchise for five years, using the form of Counselor Franchise Agreement we are then using (which may differ from this Agreement), but without further renewal. Your Franchise Agreement for the successor term, if any, will include a new minimum Office sales agent requirement schedule negotiated by you and Counselor. Upon renewal of your franchise and during the successor term, if any, (i) your Territory may be altered if the population in your Territory has increased to exceed the maximum population then allowed by Counselor for a single franchise territory or if you failed to maintain the minimum number of agents during the prior term, and (ii) you must pay all fees in the amount then being charged by Counselor for new franchises. You also must first complete reasonable upgrading and refurbishment of your Office (including any Additional Offices and Extension Offices, if applicable) to then-current System standards.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 16–17)
What This Means (2025 FDD)
According to the 2025 Counselor Realty FDD, the terms for renewal of the franchise agreement are found in Section 3.2 of Item 22, which covers contracts. To renew, a franchisee must apply in writing between 60 and 180 days before the initial term expires. They also must not be in breach of the agreement or any related agreements at the time of expiration.
If these conditions are met, a franchisee can acquire a single successor franchise for five years. This renewal would use the Counselor Realty Franchise Agreement form then in use, which may differ from the original agreement. The renewed agreement will include a newly negotiated minimum sales agent requirement for the office.
During the successor term, Counselor Realty may alter the franchisee's territory if the population has increased beyond the maximum allowed for a single franchise or if the franchisee failed to maintain the minimum number of agents during the prior term. Additionally, the franchisee must pay all fees in the amount then being charged for new franchises and complete upgrades and refurbishment of the office to meet current system standards.