Are there any exceptions to the non-refundability of fees paid to Counselor Realty?

According to Counselor Realty's 2025 Franchise Disclosure Document, fees paid directly to Counselor Realty are generally non-refundable. However, there are exceptions to this policy. Fees paid to third parties, such as vendors or suppliers, may be refundable, but this is at the discretion of the third party, not Counselor Realty. This means that while the initial franchise fee and other payments made directly to Counselor Realty are unlikely to be returned, franchisees might have a chance to recover funds paid to external service providers if those providers have a refund policy.

This distinction is important for prospective franchisees to understand, as it affects their potential financial risk. When budgeting for the initial investment, which ranges from $22,850 to $105,700, franchisees should consider which fees are paid to Counselor Realty versus third parties. The initial fee, ranging from $7,500 to $15,000, is paid directly to Counselor Realty and is generally non-refundable. Other expenses, such as real estate leases and improvements (ranging from $600 to $12,500), fixtures and furnishings ($1,000 to $15,000), opening inventory ($500 to $1,000), insurance ($1,500 to $6,000), internet development ($750 to $4,000), signage ($1,000 to $10,000), and professional fees ($0 to $6,000), are paid to third-party vendors and may be refundable depending on their policies.

Franchisees should carefully review the terms and conditions of each third-party vendor to understand their refund policies before making payments. This includes inquiring about the conditions under which refunds are granted and any associated timelines or procedures. Understanding these policies can help franchisees mitigate potential financial losses if services are not delivered as expected or if they decide to terminate their franchise agreement. It is also advisable to document all payments made to third parties and keep records of any communication regarding refund policies.

In summary, while Counselor Realty maintains a non-refundable policy for fees paid directly to them, franchisees may have recourse for refunds on payments made to third-party vendors, subject to those vendors' individual policies. Prospective franchisees should conduct thorough due diligence on all vendors and understand their refund policies to minimize financial risk.