Does Counselor Realty specify how the expenses associated with reviewing the proposed site(s) are calculated?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
You are responsible to select a site for your Office. After you notify Counselor of a proposed site, Counselor has 30 days to review the site and to notify you whether or not it consents to your operation of the Business at that site. If Counselor rejects the site you propose, you will have an additional 60 days to locate a site that is acceptable to Counselor. If you fail to do so, the Franchise Agreement will terminate and Counselor will refund your Initial Fee, less Counselor's expenses associated with reviewing the proposed site(s). See Item 12. Except as described in this paragraph, Initial Fees are nonrefundable.
Source: Item 5 — INITIAL FEES (FDD page 9)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, if a proposed site is rejected, the initial fee is refunded, but Counselor Realty deducts expenses associated with reviewing the site. However, the FDD does not specify how these expenses are calculated.
As a prospective franchisee, it's important to understand what these expenses might include. Site review expenses could encompass travel costs for Counselor Realty personnel to visit the site, fees for third-party consultants who evaluate the location, or internal administrative costs related to the review process. The lack of a clear calculation method introduces uncertainty, as the franchisee has no way of knowing how much might be deducted from their initial fee if the site is rejected.
To mitigate this risk, a prospective Counselor Realty franchisee should ask the franchisor for a detailed breakdown of what these site review expenses typically include and how they are calculated. Requesting examples of past site review expenses could also provide valuable insight. Understanding these potential costs upfront will help in making an informed decision about the franchise and in selecting a suitable site for the business.