What sections of the Counselor Realty Franchise Agreement outline the fees payable by the franchisee?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchise agreement includes the following:
- The Company agrees to grant franchisees the use of its Systems and Marks to operate a real estate brokerage business.
- The franchisee agrees to pay an initial fee, monthly franchise fees and metro advertising fees when applicable.
- The Company agrees to provide an initial training program and may offer additional training programs from time to time.
Initial franchise fees are typically $7,500 to $15,000 per franchise, as determined by the population of the franchise territory. The franchisee agrees to pay a base monthly fee covering up to five licensed agents and additional monthly fees per licensed agent above five operating from or through their office. If the franchisee is located within the 11-county metropolitan area of the Twin Cities, there is a monthly metro advertising fee per licensed agent.
You must pay Counselor a fee of $175 per trainer per hour for providing training (including initial training). See Item 6. You must pay all travel, living and incidental expenses you and your employees, and Counselor's trainers, incur in connection with training.
If your Office (including any Additional Officer or Extension Office) is located within the 11 county metropolitan area of the Twin Cities of Minneapolis and St. Paul, Minnesota (including the Counties of Scott, Wright, Isanti, Dakota, Anoka, Hennepin, Washington, Carver, Ramsey, Sherburne and Chisago, the "Twin Cities"), you must pay to Counselor an Advertising Fee equal to $60 per agent per month for each agent operating out of the Office, Additional Office or Extension Office located in such metropolitan area, as a contribution towards the general costs of marketing activities conducted by Counselor.
If your Office (including any Additional Officer 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.
You will be required to pay us a Website Set Up Fee for any such webpages or subdomains, as more particularly described in Section 5.5. You will also be required to pay us a Website Fee associated with the webpages and subdomains we create for your Office, any Additional Offices or Extension Offices, and for the licensed agents operating through such offices, in such amounts, and at such times, as we shall determine from time to time in our sole discretion and as more particularly described in Section 5.5.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 16–17)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, several sections within the agreement detail the fees a franchisee must pay. Item 21 notes that franchisees agree to pay an initial fee, monthly franchise fees, and metro advertising fees, where applicable. Item 11 specifies that franchisees must pay a fee of $175 per trainer per hour for training, including initial training, as well as covering travel and living expenses for both the franchisee/employees and Counselor Realty's trainers.
Item 11 also states that if a franchisee's office is located within the 11-county metropolitan area of the Twin Cities, they must pay an Advertising Fee of $60 per agent per month. For offices outside the Twin Cities, once a Regional Advertising Group is established, franchisees must pay $25 per agent per month to the Regional Advertising Fund.
Furthermore, Item 22 indicates that franchisees will be required to pay a Website Set Up Fee and a Website Fee for webpages and subdomains created for their office, additional offices, extension offices, and licensed agents. These fees are further described in Section 5.5 of the Franchise Agreement. Therefore, a prospective franchisee should carefully review Items 6, 11, and 22, as well as Section 5.5 of the Counselor Realty Franchise Agreement, to fully understand all fee obligations.