What standards must the inventory purchased or leased by a Counselor Realty franchisee meet?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Counselor also reserves the right to receive fees or other consideration in exchange for rights licensed or services rendered to third parties, including vendors. Counselor does not guarantee the availability of independent sources of supply for any particular product or service required to establish or operate a Business.
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 must ensure that signage, supplies, fixtures, equipment, and certain inventory used in their business meet the standards and specifications established by Counselor Realty. These standards and specifications are further detailed in the Franchise Policy Guidelines, which Counselor Realty may revise periodically.
While franchisees are required to adhere to Counselor Realty's standards for goods and services, they are generally free to source these items from any available supplier. Counselor Realty does not currently maintain a list of approved suppliers or a formal process for approving or disapproving suppliers, though it reserves the right to establish such a system in the future.
Counselor Realty may direct franchisees to specific vendors for certain items needed for the ongoing operation of the business. It's important to note that Counselor Realty does not receive income directly from franchisee purchases from third-party suppliers, although these suppliers may contribute to system-wide sales promotion or advertising programs. Counselor Realty also reserves the right to receive fees or other consideration for licensing rights or services provided to third parties, including vendors. However, Counselor Realty does not guarantee the availability of independent sources for any specific product or service required to operate the business.