Does Counselor Realty have sole discretion in extending the deadline to open the office?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
You must select a site for your Office within 180 days after you sign this Agreement. After you notify us of a proposed site for your Office, we will have 30 days to review the site and to notify you whether or not we consent to your operation of the Business at that site. If we reject the site you propose, you will have an additional 60 days to locate a site that is acceptable to us. If you fail to do so, this Agreement will automatically terminate and we will refund your Initial Franchise Fee, less our expenses associated with reviewing the proposed site(s). After we consent to an Office site you propose (if at all), you must open your Business at that site within six months. If you fail to do so, this Agreement will automatically terminate and your Initial Franchise Fee will not be refunded. We may, in our sole discretion, grant extensions of the deadlines described above. Our consent to a site is not a guarantee or assurance as to the availability, suitability or prospects of an Office or Business.
Source: Item 5 — INITIAL FEES (FDD page 9)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, Counselor Realty has sole discretion in granting extensions to the deadlines for site selection and opening the business. Specifically, a franchisee must select a site within 180 days of signing the agreement. After Counselor Realty is notified of the proposed site, they have 30 days to review and respond. If the site is rejected, the franchisee has an additional 60 days to find an acceptable site. Once a site is approved, the franchisee must open the business within six months.
If the franchisee fails to meet these deadlines, the franchise agreement can be terminated. If the franchisee fails to select a site within the allotted time, the initial franchise fee will be refunded, less any expenses Counselor Realty incurred while reviewing the proposed sites. However, if the franchisee fails to open the business within six months of site approval, the initial franchise fee will not be refunded.
This clause gives Counselor Realty significant control over the timeline for establishing a new franchise. While the initial deadlines seem reasonable, the fact that extensions are granted at Counselor Realty's sole discretion means a franchisee's plans could be significantly impacted by delays or denials of extensions. Prospective franchisees should carefully consider this and discuss potential extension scenarios with Counselor Realty during their due diligence.