Under what condition will the Counselor Realty agreement automatically terminate?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
1.2 Site Selection. You must select a site for your Office within 180 days after you sign this Agreement. After you notify us of a proposed site for your Office, we will have 30 days to review the site and to notify you whether or not we consent to your operation of the Business at that site. If we reject the site you propose, you will have an additional 60 days to locate a site that is acceptable to us. If you fail to do so, this Agreement will automatically terminate and we will refund your Initial Franchise Fee, less our expenses associated with reviewing the proposed site(s). After we consent to an Office site you propose (if at all), you must open your Business at that site within six months. If you fail to do so, this Agreement will automatically terminate and your Initial Franchise Fee will not be refunded. We may, in our sole discretion, grant extensions of the deadlines described above. Our consent to a site is not a guarantee or assurance as to the availability, suitability or prospects of an Office or Business.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the franchise agreement will automatically terminate under certain conditions related to site selection and office opening. Specifically, a franchisee must select a site for their office within 180 days of signing the agreement. After the franchisee proposes a site, Counselor Realty has 30 days to review and approve or reject it. If the initial site is rejected, the franchisee has an additional 60 days to find an acceptable site. Failure to secure an approved site within these timeframes results in automatic termination of the agreement. However, in this case, Counselor Realty will refund the initial franchise fee, deducting any expenses they incurred while reviewing the proposed sites.
Even after a site is approved, the franchisee must open their Counselor Realty business at that location within six months. Failing to do so also results in automatic termination of the franchise agreement. In this instance, the initial franchise fee is not refunded to the franchisee.
Counselor Realty does retain the discretion to grant extensions to these deadlines, providing some flexibility. However, franchisees should be aware that site approval does not guarantee the success or suitability of the location for their business. These stipulations highlight the importance of thorough planning and efficient execution in the early stages of establishing a Counselor Realty franchise.