Does Counselor Realty specify how the Advertising Fee collected from franchisees is used?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
. If your Office (or any Additional Office or Extension Office) is located within the 11-county metropolitan area of the Twin Cities of Minneapolis and St. Paul, Minnesota, you must pay 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. The amount of this 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 (or any Additional Office or Extension Office) is located outside the Twin Cities. If your Office (or any Additional Office 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. The amount of Advertising Fees for the Regional Advertising Group may be increased during the term of the franchise by a majority vote of the "Regional Advertising Committee" that manages your Regional Advertising Group. See Item 11 for additional information regarding Advertising Fees and Regional Advertising Groups. Advertising Fees are nonrefundable and are uniformly imposed among franchisee-owned "Counselor" offices. "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 Fees described abov
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the use of advertising fees depends on the franchisee's location. For offices within the 11-county metropolitan area of the Twin Cities of Minneapolis and St. Paul, Minnesota, franchisees must pay an Advertising Fee of $60 per agent per month. The FDD states that Counselor Realty may increase this fee at its discretion.
For offices located outside the Twin Cities area, Counselor Realty reserves the right to establish a "Regional Advertising Group." If such a group is formed, franchisees must join and pay $25 per agent per month to the "Regional Advertising Fund." This amount can be increased by a majority vote of the "Regional Advertising Committee." The advertising fees are nonrefundable and uniformly imposed among franchisee-owned Counselor Realty offices. Counselor Realty offices owned and operated by Counselor Realty contribute toward the general costs of marketing activities conducted by Counselor Realty under a different formula and are not required to pay the specific advertising fees described.
Item 11 of the Counselor Realty FDD provides additional information regarding advertising fees and regional advertising groups. Prospective franchisees should carefully review Item 11 to understand how these fees are managed and utilized in their specific region. Understanding the advertising structure is crucial for franchisees to assess their marketing obligations and potential benefits.