Under what conditions will Counselor Realty refund the initial fee?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
When you sign the Franchise Agreement, you must pay Counselor an Initial Fee in an amount of: $7,500 if the population in your Territory is less than 10,000, or $15,000 if the population in your Territory is 10,000 or more. See Item 12.
You are responsible to select a site for your Office. After you notify Counselor of a proposed site, Counselor has 30 days to review the site and to notify you whether or not it consents to your operation of the Business at that site. If Counselor rejects the site you propose, you will have an additional 60 days to locate a site that is acceptable to Counselor. If you fail to do so, the Franchise Agreement will terminate and Counselor will refund your Initial Fee, less Counselor's expenses associated with reviewing the proposed site(s). See Item 12. Except as described in this paragraph, Initial Fees are nonrefundable.
At your request, Counselor will provide you and up to two of your key personnel initial training (the amount of such initial training shall be as determined by Counselor). See Item 11. You must pay Counselor a fee for training in the amount of $175 per trainer per hour. In addition, you must pay all travel, living and incidental expenses you and your employees, and our trainers, incur in connection with training, which Counselor estimates could range from $0 (if you and our trainers do not have to travel to attend training) to $750 per person per day. Training fees are not refundable.
Source: Item 5 — INITIAL FEES (FDD page 9)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, there are specific circumstances under which a refund of the initial franchise fee may be granted. After submitting a confidential franchise application and upon approval by Counselor Realty, the franchisee is responsible for selecting a site for their office. Counselor Realty then has 30 days to review the proposed site. If Counselor Realty rejects the proposed site, the franchisee has an additional 60 days to find an acceptable location.
However, if the franchisee fails to locate a site that meets Counselor Realty's approval within this timeframe, the Franchise Agreement will terminate. In this specific instance, Counselor Realty will refund the initial fee, but will deduct any expenses incurred by Counselor Realty during the site review process. The initial fee for a Counselor Realty franchise is $7,500 if the territory's population is less than 10,000, and $15,000 if the population is 10,000 or more.
It's important to note that this is the primary condition under which the initial fee is refundable. The FDD explicitly states that "Except as described in this paragraph, Initial Fees are nonrefundable." This means that in most other scenarios, such as termination for other reasons or a franchisee's change of mind, the initial fee will not be returned. Prospective franchisees should carefully consider the site selection process and the potential for rejection, as this is a key factor in determining whether a refund is possible.
Additionally, if Counselor Realty consents to a site, the franchisee must open their business at that location within six months. Failure to do so will result in the termination of the Franchise Agreement, and in this case, the initial fee will not be refunded. Counselor Realty may, at its discretion, grant extensions to these deadlines.