Which sections of the Counselor Realty Franchise Agreement detail the requirements for pre-opening purchases/leases?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 5: INITIAL FEES]
5. INITIAL FEES
Before you pay anything to Counselor, you must submit a confidential franchise application, containing all information required by Counselor. If Counselor approves your application, you must open the Office for business within 12 months after the date of the Franchise Agreement (subject to extension at Counselor's sole discretion).
When you sign the Franchise Agreement, you must pay Counselor an Initial Fee in an amount of: $7,500 if the population in your Territory is less than 10,000, or $15,000 if the population in your Territory is 10,000 or more. See Item 12.
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.
At your request, Counselor will provide you and up to two of your key personnel initial training (the amount of such initia
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 16–17)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Counselor Realty Franchise Agreement outlines several requirements related to pre-opening activities, including site selection and associated fees. Item 12 discusses the franchisee's responsibility to select a site for their office within a specified timeframe. It also details the process for Counselor Realty's review and approval of the proposed site. Failure to secure an approved site within the given timeframe can lead to termination of the Franchise Agreement and potential loss of the initial fee.
Item 5 specifies the initial fees required to be paid when signing the Franchise Agreement, which range from $7,500 to $15,000 depending on the population of the territory. This section also mentions the possibility of a refund of the initial fee, less expenses, if Counselor Realty rejects the proposed site and the franchisee cannot find an acceptable alternative within a specified period.
Additionally, Item 22 references Section 5.5 regarding website setup and associated fees for webpages or subdomains created for the franchisee's office and licensed agents. These sections collectively provide a framework for understanding the financial and procedural obligations a franchisee must meet before opening a Counselor Realty franchise.