What specifications must the inventory purchased or leased by a Counselor Realty franchisee meet?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
CES
The Franchise Agreement requires you to purchase or lease signage and other supplies, fixtures, equipment and certain inventory used in the Business that meet standards and specifications established by Counselor. You may obtain authorized goods and services from any available source of supply. Your Business may be identified only by Marks Counselor authorizes.
Standards and specifications for establishing and operating the Business also are described in the Franchise Policy Guidelines issued by Counselor, and you are bound by the terms of the Franchise Agreement to operate the Business in accordance with the requirements of the Franchise Policy Guidelines as revised periodically by Counselor.
Although Counselor establishes various standards and specifications for the goods and services that go into the establishment and operation of your Business, Counselor currently does not approve or disapprove suppliers as such (as distinguished from the goods or services they supply) and therefore currently maintains no criteria for approving suppliers or communicating approval or revocation of approval of suppliers to franchisees. Counselor may establish such criteria in the future. You may be directed to vendors able to supply portions of your requirements for certain items used in the ongoing operation of the Business. Counselor does not derive income solely from purchases made by franchisees from third party suppliers. Third party suppliers may make contributions from time to time to System sales promotion, advertising or other programs.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–16)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, franchisees are required to purchase or lease signage, supplies, fixtures, equipment, and certain inventory that meet the standards and specifications established by Counselor Realty. These standards and specifications are further detailed in the Franchise Policy Guidelines issued by Counselor Realty, which franchisees are bound to follow as per the Franchise Agreement. The Franchise Policy Guidelines may be revised periodically by Counselor Realty.
While Counselor Realty establishes standards and specifications for goods and services, it does not currently approve or disapprove specific suppliers. However, Counselor Realty may direct franchisees to vendors who can supply certain items needed for the business's operation. It is important to note that Counselor Realty does not guarantee the availability of independent sources for any particular product or service required to establish or operate the business.
In practical terms, this means a prospective Counselor Realty franchisee must adhere to Counselor Realty's guidelines when sourcing necessary items for their business. Although franchisees can obtain authorized goods and services from any available source, they must ensure these meet Counselor Realty's standards. The franchisee must also stay updated with any revisions to the Franchise Policy Guidelines to maintain compliance. This ensures uniformity and brand consistency across all Counselor Realty franchises.