Under what conditions can Counselor Realty establish a Regional Advertising Group?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
this Agreement 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 (or any Additional Office or Extension Office) is located outside the Twin Cities. If your Office (or any Additional Office 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. The amount of your Advertising Fees for the Regional Advertising Group may be increased during the term of this Agreement by a majority vote of the "Regiona
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, Counselor Realty reserves the right to establish and organize a Regional Advertising Group if a franchisee's office, additional office, or extension office is located outside the 11-county metropolitan area of the Twin Cities of Minneapolis and St. Paul, Minnesota. This area includes the counties of Scott, Wright, Isanti, Dakota, Anoka, Hennepin, Washington, Carver, Ramsey, Sherburne, and Chisago.
If a Regional Advertising Group is established, franchisees located outside the Twin Cities metropolitan area must become members and pay an advertising fee of $25 per agent per month to the Regional Advertising Fund. This fee contributes to the marketing activities conducted by the Regional Advertising Group. The Regional Advertising Committee, which manages the group, has the authority to increase the advertising fees during the term of the Franchise Agreement.
This policy has implications for prospective franchisees depending on their location. Those within the Twin Cities area pay a different advertising fee directly to Counselor Realty, while those outside the area may be subject to a Regional Advertising Group with fees managed by a committee. It is important for potential franchisees to understand these location-based differences in advertising fees and the potential for fee increases managed at the regional level.
Franchisees should inquire about the likelihood of a Regional Advertising Group being established in their area and the current or anticipated activities of such a group. Understanding the structure and decision-making process of the Regional Advertising Committee is also crucial for franchisees to assess the potential impact on their advertising expenses.