Are there any exceptions to the requirement that a Counselor Realty franchisee must comply with all regulations?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
Counselor requires you to confine your Business to the operation of a full service residential and/or commercial real estate brokerage business. You may not conduct any other business or activity at the Office (or any Additional Office or Extension Office), and you may not offer or sell any product or service from the Business except those authorized by Counselor. Your Business may be identified only by the Marks designated by Counselor. Your Business must operate in full compliance with all applicable local, state and federal laws and regulations. The Franchise Agreement also contains certain covenants restricting your freedom to engage in certain competitive activities, and requires you to indemnify Counselor and its affiliates for all claims and losses related to the operation of your Business. See Items 9(p) and 17, and Exhibit B.
You must at all times possess a bona fide real estate broker's license in good standing under the laws of the state where the Business is located. If you are a partnership, corporation or other entity, you must be legally authorized to do business in the state where your Business is located. At all times during the term of the franchise you must keep in force all necessary licenses and permits required by public authorities. The Wisconsin Department of Regulation and Licensing, the Wisconsin Realtors Association, the National Association of Realtors, local Boards of Realtors, and the Federal Trade Commission have adopted various regulations which govern the activities and business practices of real estate agents. You must comply with all of these regulations and should investigate them before deciding whether to purchase a Counselor franchise.
- (c) offer and provide all products and services, and continuously operate the Business, in accordance with the Franchise Policy Guidelines and all applicable laws and regulations;
- (d) be managed by you or a designated manager involved in the day-to-day operation of the Business; be staffed with qualified and trained employees and licensed real estate agents, in conformity with local, state and federal laws and regulations, who are employed or contracted solely by you, not by us. You are solely responsible for hiring and discharging employees, and setting their wages and terms of employment. You are solely responsible for entering into and terminating contracts with agents;
Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 7–8)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, franchisees must operate their business in full compliance with all applicable local, state, and federal laws and regulations. This requirement is consistently emphasized throughout the agreement. Specifically, franchisees must maintain a bona fide real estate broker's license in good standing and keep all necessary licenses and permits required by public authorities in force during the franchise term.
Counselor Realty also requires franchisees to ensure their business is managed by the franchisee or a designated manager involved in day-to-day operations. They must staff the business with qualified, trained, and licensed real estate agents who are employed or contracted solely by the franchisee, adhering to all relevant laws and regulations. The franchisee is solely responsible for hiring, discharging, and setting the wages and terms of employment for these employees and agents.
Furthermore, franchisees must use advertising programs, materials, and media that conform to Counselor Realty's brand standards and image. While Counselor Realty does not currently require pre-approval of advertising materials, they reserve the right to review and approve them, and franchisees must alter or remove any materials that do not meet the franchisor's standards. The FDD makes no explicit exceptions to the requirement that franchisees comply with all applicable laws and regulations.