What standards must the other supplies 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 purchase or lease signage, other 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.
While franchisees can source these authorized goods and services from any available supplier, the items must adhere to Counselor Realty's established standards. Currently, Counselor Realty does not maintain a list of approved or disapproved suppliers but may establish such criteria in the future. This means franchisees have the flexibility to choose their suppliers as long as the products meet the required specifications.
Counselor Realty does not receive income directly from franchisee purchases from third-party suppliers. However, third-party suppliers may contribute to system-wide sales promotion, advertising, or other programs. Counselor Realty also reserves the right to receive fees or other consideration for rights licensed or services rendered to third parties, including vendors. Prospective franchisees should confirm with Counselor Realty if there are any preferred vendors to streamline the process of sourcing compliant supplies and equipment.