Is there a limit to how much Counselor Realty can increase the Advertising Fee?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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If your Office (including any Additional Officer or Extension Office) is located within the 11 county metropolitan area of the Twin Cities of Minneapolis and St. Paul, Minnesota (including the Counties of Scott, Wright, Isanti, Dakota, Anoka, Hennepin, Washington, Carver, Ramsey, Sherburne and Chisago, the "Twin Cities"), you must pay to Counselor an Advertising Fee equal to $60 per agent per month for each agent operating out of the Office, Additional Office or Extension Office located in such metropolitan area, as a contribution towards the general costs of marketing activities conducted by Counselor. "Counselor" offices owned and operated by Counselor contribute toward the general costs of marketing activities conducted by Counselor under a different formula, and are not required to pay the specific Advertising Fee described above. The amount of the monthly Advertising Fee may be increased during the term of the franchise by Counselor from time to time in its sole discretion.
We reserve the right to establish and organize a "Regional Advertising Group" if your Office (including any Additional Officer or Extension Office) is located outside the Twin Cities. If your Office (including any Additional Officer or Extension Office) is located outside the Twin Cities, you must be a member of the "Regional Advertising Group" (once established) and pay to the "Regional Advertising Fund" an Advertising Fee equal to $25 per agent per month for each agent operating out of the Office, Additional Office or Extension Office located in such geographical area. "Counselor" offices owned and operated by Counselor contribute toward the general costs of marketing activities conducted by Counselor under a different formula, and will not be required to pay the specific Advertising Fee described above to the Regional Advertising Fund. Activities of the Regional Advertising Group will be coordinated, and the Regional Advertising Fund will be administered by the Regional Advertising Committee, which will consist of one representative from each franchisee-owned "Counselor" office outside the Twin Cities, and three representatives of Counselor. The amount of monthly Advertising Fees for the Regional Advertising Group may be increased during the term of the franchise by a majority vote of that Regional Advertising Commit
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 17–21)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the ability to increase the advertising fee depends on the location of the franchise office. For offices located within the 11-county metropolitan area of the Twin Cities of Minneapolis and St. Paul, Minnesota, Counselor Realty has the sole discretion to increase the monthly Advertising Fee. Currently, this fee is $60 per agent per month. This means that franchisees in the Twin Cities area are subject to potential increases in their advertising costs at the discretion of Counselor Realty.
For offices located outside the Twin Cities area, the advertising fee is managed differently. These offices, once a Regional Advertising Group is established, must be members and pay into a Regional Advertising Fund. The current Advertising Fee for these offices is $25 per agent per month. Increases to this fee are determined by a majority vote of the Regional Advertising Committee, which includes representatives from franchisee-owned offices and Counselor Realty. This provides franchisees outside the Twin Cities with a degree of control over advertising fee increases, as they have representation and voting rights on the committee.
In summary, while Counselor Realty has unilateral control over advertising fee increases for franchisees within the Twin Cities area, franchisees outside this area have a voice in the decision-making process through the Regional Advertising Committee. This difference in control over advertising fees is an important consideration for prospective franchisees when evaluating the financial implications of opening a Counselor Realty franchise in different locations.