Counselor Realty Franchising, Inc.

The transfer fee of $2,000 is substantially lower than industry norms ($5,000-$10,000). What services and approval processes are included in a franchise transfer at this fee level?

Ad fund contributions are charged at 60 basis points monthly, significantly higher than the typical 1.0-3.0 range. How is the ad fund allocated, what specific marketing activities does it support, and how is fund performance tracked and reported to franchisees?

Two units left the system in 2023 classified as 'ceased other' rather than closure, termination, or transfer. What specific circumstances caused these exits, and what distinction does the franchisor make between these categories?

The 3-year non-renewal rate of 28.6% is at the high end of the typical range. How many franchisees have chosen not to renew their agreements, and what reasons have they cited for non-renewal?

The support and training score of 62 is below the typical range of 71.0-78.5. What specific training does the franchisor provide to new franchisees, and what ongoing support and coaching is available to established operators?

The franchise fee of $15,000 is below typical real estate service franchises at $20,000-$40,000. What is included in the initial franchise fee, and are there additional startup costs not reflected in this amount?

The system has contracted at a 3-year CAGR of -5.4%. What is the franchisor's growth strategy, and what factors have contributed to unit decline over the past 3 years?

The franchise agreement requires maintaining a minimum number of real estate agents operating from the office. What is this minimum threshold, and what are the consequences for failing to maintain it?

Personal guarantees and spouse guarantees are required for all agreement obligations. Can you clarify the scope of these guarantees and what liabilities they cover beyond the franchise agreement itself?

Late payments on franchise obligations accrue interest at 8% per year with no flat late fees. What specific payment obligations are subject to this interest rate, and are there any grace periods before interest begins accruing?

All disputes must be resolved through binding arbitration in Minneapolis, Minnesota. What is the typical cost of arbitration, and are there any circumstances under which a franchisee can pursue litigation instead of arbitration?

The territory is protected but not exclusive, and encroachment protections are noted. Can you explain the difference between these two provisions and what specific protections apply to each territory?

With zero reported litigation cases and zero terminations, what contractual grounds for termination exist (8 causes noted), and under what circumstances has the franchisor exercised termination rights?

The franchise agreement requires mandatory participation in system advertising. What is the scope of this requirement, and what flexibility do franchisees have in marketing decisions outside of the system advertising program?

The non-compete clause restricts activity for 2 years within 50 miles. Does this apply to all types of real estate activities, or only to specific services? Are there any exceptions for existing client relationships?

Units reporting for Item 19 financial performance data is not available. Will the franchisor provide Item 19 financial performance information, and if so, what does it show regarding unit profitability?

The franchise score for risk factors is 80, above the typical range of 38.0-69.0. What specific risk factors contributed to this elevated score, and how should prospective franchisees interpret this relative to other franchises in the category?

No renewal fee is noted. Are there any fees or costs associated with renewing the franchise agreement at the end of the initial 5-year term?