Under what condition is the Initial Franchise Fee for Counselor Realty refundable?
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 initial franchise fee is generally nonrefundable, but there is one specific circumstance where a refund may be available. If a prospective franchisee fails to secure an approved site for their Counselor Realty office within a defined timeframe, they may be eligible for a partial refund.
Specifically, the franchisee has 180 days from signing the agreement to select a site. Counselor Realty then has 30 days to review and approve or reject the proposed site. If the initial site is rejected, the franchisee has an additional 60 days to find an alternative acceptable location. If the franchisee fails to find an acceptable site within these timeframes, the agreement terminates automatically.
In this specific instance, Counselor Realty will refund the initial franchise fee, but will deduct any expenses they incurred while reviewing the proposed sites. However, if Counselor Realty approves a site, and the franchisee fails to open their Counselor Realty business at that location within six months, the initial franchise fee will not be refunded. Counselor Realty may, at its discretion, grant extensions to these deadlines.