Before signing the Franchise Agreement, what schedule will be negotiated between Counselor Realty and the franchisee?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you sign the Franchise Agreement, you and Counselor will negotiate a schedule for the minimum number of real estate sales agents who must operate from your Office. If you fail to satisfy the agreed-upon schedule, or to maintain the minimum required number of agents in the Office on an ongoing basis, you may lose the exclusive right to operate a "Counselor" office in the Territory, your Territory may be altered (as determined by Counselor in its sole discretion), or Counselor may terminate the Franchise Agreement. See below and Item 17.
Source: Item 12 — TERRITORY (FDD pages 21–23)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, before signing the Franchise Agreement, the franchisee and Counselor Realty will negotiate a schedule that outlines the minimum number of real estate sales agents who must operate from the franchisee's office. This schedule is a critical component of the agreement, as the franchisee's ability to maintain the agreed-upon number of agents directly impacts their rights and the terms of the franchise.
Failure to adhere to the negotiated schedule, or to consistently maintain the minimum required number of agents, can lead to significant repercussions. Counselor Realty reserves the right to revoke the franchisee's exclusive operating rights within their territory, alter the territory boundaries at their discretion, or even terminate the Franchise Agreement altogether. This underscores the importance of carefully considering the feasibility of meeting the agent number targets during the negotiation process.
This requirement ensures that franchisees actively work to build and maintain a productive sales team, contributing to the overall success and brand presence of Counselor Realty. Prospective franchisees should carefully evaluate their ability to recruit and retain agents in their designated territory before committing to the franchise. Understanding local market conditions, competition for agents, and the resources required to support a successful team are all essential factors to consider during this negotiation.