Which sections of the Counselor Realty Franchise Agreement outline the franchisee's advertising obligations?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Franchise Agreement | Disclosure Document Item |
|---|---|---|
| o. Advertising | Sections 5.4 and 7.1 | Item 11 |
During the operation of your Business, Counselor will provide periodic advice on principal aspects of the Business, through various means. Franchise Agreement, Section 6.2.
You must participate in Counselor System advertising programs.
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. "Counselor" offices owned and operated by Counselor contribute toward the general costs of marketing activities conducted by Counselor under a different formula, and are not required to pay the specific Advertising Fee described above. The amount of the monthly Advertising Fee may be increased during the term of the franchise by Counselor from time to time in its sole discretion.
We reserve the right to establish and organize a "Regional Advertising Group" if your Office (including any Additional Officer or Extension Office) is located outside the Twin Cities. 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. "Counselor" offices owned and operated by Counselor contribute toward the general costs of marketing activities conducted by Counselor under a different formula, and will not be required to pay the specific Advertising Fee described above to the Regional Advertising Fund. Activities of the Regional Advertising Group will be coordinated, and the Regional Advertising Fund will be administered by the Regional Advertising Committee, which will consist of one representative from each franchisee-owned "Counselor" office outside the Twin Cities, and three representatives of Counselor. The amount of monthly Advertising Fees for the Regional Advertising Group may be increased during the term of the franchise by a majority vote of that Regional Advertising Committee.
- (e) use only advertising programs, materials and media (including print, audio, video, website, and computer-transmitted media) that conform at all times to Counselor's brand standard and image. If Counselor determines, in its sole discretion, that any advertising materials or media do not conform to Counselor's brand standard or image, you will alter or remove such advertising materials or media, as directed in writing by Counselor. You have the option to develop your own website as part of your overall promotion strategy. Your use of our trademarks in any advertising materials, advertising media or on your website must conform at all times to the requirements set forth in the Article 4 of this Agreement. Counselor does not currently require any advertising materials, advertising media or your website to be approved by Counselor prior to you using them, but reserves the right to review and approve such advertising materials, advertising media and your website (and to require you to alter or cease using all or any portion of such advertising materials, advertising media or website it does not approve); and
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 Franchise Agreement address the franchisee's advertising obligations. Item 9 details franchisee obligations, specifying that advertising responsibilities are outlined in Sections 5.4 and 7.1 of the Franchise Agreement, and are further discussed in Item 11 of the disclosure document.
Item 11 provides additional details regarding Counselor Realty's advertising programs. Franchisees are required to participate in these programs. If a franchisee's office is located within the 11-county Twin Cities metropolitan area, they must pay an Advertising Fee of $60 per agent per month. This fee contributes to Counselor Realty's general marketing activities. Counselor Realty offices that are owned and operated by the company itself contribute under a different formula and are not subject to this specific Advertising Fee. The franchisor retains the right to increase this monthly Advertising Fee at its discretion.
For offices located outside the Twin Cities area, Counselor Realty reserves the right to establish a Regional Advertising Group. Franchisees in these areas must join this group and pay an Advertising Fee of $25 per agent per month to the Regional Advertising Fund. Similar to the Twin Cities arrangement, company-owned offices are not required to pay this specific fee. The Regional Advertising Group's activities are managed by a Regional Advertising Committee, which includes franchisee representatives and three representatives from Counselor Realty. This committee can increase the monthly Advertising Fees with a majority vote.
Item 22 also touches on advertising, stating that franchisees must use advertising programs, materials, and media that conform to Counselor Realty's brand standards. While Counselor Realty does not currently require pre-approval of advertising materials, they reserve the right to review and approve them in the future, and can direct franchisees to alter or remove non-compliant advertising. Franchisees also have the option to develop their own websites, but the use of Counselor Realty's trademarks must adhere to Article 4 of the Franchise Agreement.