What sections of the Counselor Realty Franchise Agreement address pre-opening purchases/leases?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
ORY
The Franchise Agreement authorizes you to establish and operate one Counselor Business at a single Office location within a designated geographic area (the "Territory"). You must obtain our written consent prior to opening or operating any additional Office locations. If the population in your Territory at the time you sign the Franchise Agreement is less than 10,000, your Initial Fee will be $7,500; if the population is 10,000 or more, your Initial Fee will be $15,000. Population figures are determined using then-current census data. You must select a site for your Office within 180 days after you sign the Franchise Agreement. After you notify Counselor of a proposed site for your Office, 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 automatically terminate and Counselor will refund your Initial Fee, less Counselor's expenses associated with reviewing the proposed site(s). After Counselor consents to an Office site you propose, you must open your Business at that site within
six months. If you fail to do so, the Franchise Agreement will automatically terminate and your Initial Fee will not be refunded. Counselor may, in its sole discretion, grant extensions of the deadlines described above.
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 a one-time fee of $750 for each Additional Office location (the "Additional Office Application Materials").
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 16–17)
What This Means (2025 FDD)
According to the 2025 Counselor Realty FDD, Item 12 and sections 1.1, 5.5 of Item 22 within the Franchise Agreement address pre-opening purchases and leases. Item 12 states that a franchisee must select a site for their office within 180 days of signing the Franchise Agreement. Counselor Realty has 30 days to review the proposed site and notify the franchisee of their decision. If the proposed 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 Franchise Agreement and a partial refund of the initial fee, minus Counselor Realty's expenses for reviewing the proposed sites.
Item 12 further stipulates that once a site is approved, 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 may, at its discretion, grant extensions to these deadlines.
Sections 1.1 and 5.5 of Item 22 discuss the requirement to pay a Website Set Up Fee and Website Fee associated with the webpages and subdomains Counselor Realty creates for the franchisee's office. This includes any Additional Offices or Extension Offices, and for the licensed agents operating through such offices. These sections outline the franchisee's obligations regarding website setup and associated costs, which are essential for establishing an online presence prior to opening the Counselor Realty business.