Is there a limit to how many times a Counselor Realty franchise can be renewed?
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 the 2025 Counselor Realty Franchise Disclosure Document, a Counselor Realty franchise has a limited renewal policy. The initial term of the franchise agreement is five years, starting from the effective date. A franchisee can apply for a single successor franchise term of five years if they apply in writing between 60 and 180 days before the initial term expires and are not in breach of the agreement.
However, this successor franchise agreement will be based on the Counselor Realty franchise agreement form then in use, which may differ from the original agreement. The terms of the successor franchise will include a newly negotiated minimum sales agent requirement.
Upon renewal and during the successor term, the franchisee's territory may be altered if the population has increased beyond Counselor Realty's allowed maximum or if the franchisee failed to maintain the minimum number of agents during the prior term. Additionally, the franchisee must pay all fees then charged for new franchises and complete upgrades and refurbishment of the office to meet current system standards. The agreement explicitly states that there is no further renewal beyond this single successor franchise term.