What are the two components described in Exhibit A of the Counselor Realty Franchise Agreement?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
While this Agreement is in effect, as long as you satisfy and maintain the minimum Office sales agent requirements set forth in Exhibit A to this Franchise Agreement, we will not ourselves establish or operate a "Counselor" office, or license another to establish or operate a "Counselor" office within the Territory.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, Exhibit A to the Franchise Agreement outlines two key components: the geographic territory granted to the franchisee and the minimum sales agent requirements that must be maintained at the office.
The geographic territory defines the area where Counselor Realty will not establish or operate another "Counselor" office, nor license another to do so, while the agreement is in effect. However, it's important to note that Counselor Realty and other licensees can still operate and provide real estate brokerage services within the territory, meaning the franchisee does not have an exclusive right to the territory.
The minimum sales agent requirements are crucial because failure to meet and maintain these requirements can lead to the loss of the exclusive right to operate a Counselor Realty office in the designated territory. The territory may be altered, or the Franchise Agreement may be terminated at Counselor Realty's discretion. This condition underscores the importance of actively managing and staffing the office to meet the franchisor's expectations and protect the franchisee's territorial rights.