To what standards must a Counselor Realty office be upgraded upon renewal?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
3. TERM.
- 3.1 Term. The initial term of this Agreement begins on the Effective Date of this Agreement and ends five years from the Effective Date.
- 3.2 Successor Franchise. If you apply in writing between 60 and 180 days before expiration of the initial term and are not in breach of this Agreement (or any related agreement) at the expiration of the initial term, you may acquire a single successor franchise for five years, using the form of Counselor Franchise Agreement we are then using (which may differ from this Agreement), but without further renewal. Your Franchise Agreement for the successor term, if any, will include a new minimum Office sales agent requirement schedule negotiated by you and Counselor. Upon renewal of your franchise and during the successor term, if any, (i) your Territory may be altered if the population in your Territory has increased to exceed the maximum population then allowed by Counselor for a single franchise territory or if you failed to maintain the minimum number of agents during the prior term, and (ii) you must pay all fees in the amount then being charged by Counselor for new franchises. You also must first complete reasonable upgrading and refurbishment of your Office (including any Additional Offices and Extension Offices, if applicable) to then-current System standards.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, if a franchisee applies for a successor franchise term, they must complete reasonable upgrading and refurbishment of their Office, including any Additional Offices and Extension Offices, to then-current System standards. This requirement is contingent upon the franchisee applying in writing between 60 and 180 days before the expiration of the initial term and not being in breach of the Franchise Agreement at the time of expiration.
This means that to be eligible for renewal, a Counselor Realty franchisee must invest in bringing their physical office space (and any additional or extension offices) up to the standards currently in place for new Counselor Realty franchises. These upgrades ensure that all Counselor Realty locations maintain a consistent brand image and operational quality. The specific upgrades required would be based on the 'then-current System standards,' which could include changes to decor, technology, signage, or other aspects of the business.
The costs associated with these upgrades are the franchisee's responsibility. This could represent a significant investment at the time of renewal, and franchisees should factor this potential expense into their long-term financial planning. It is important to note that the franchisor has discretion in determining what constitutes 'reasonable upgrading and refurbishment,' so franchisees should seek clarity on these expectations well in advance of their renewal application.
In addition to the office upgrade requirements, the successor franchise agreement will include a new minimum Office sales agent requirement schedule negotiated between the franchisee and Counselor Realty. The franchisee will also be required to pay all fees in the amount then being charged by Counselor Realty for new franchises. Furthermore, the franchisee's territory may be altered if the population in their territory has increased beyond the maximum allowed by Counselor Realty or if the franchisee failed to maintain the minimum number of agents during the prior term.