Counselor Realty logo

Counselor Realty Franchise

Audited Financials
Real EstateEst. 2001Coon Rapids, MN
www.counselorrealty.com

Risk Score

Pending analysis

Investment Range

$22,850 - $105,700

Franchise Fee

$7,500

Total US Locations

11

Business Summary

Counselor Realty Franchising, Inc. offers franchises for a full-service residential and commercial real estate brokerage business. Franchisees operate an office within a designated territory, providing real estate brokerage services to customers for buying and selling residential and commercial properties.

Corporate History

Counselor Realty Franchising, Inc. was incorporated in May 2001 in Minnesota to conduct franchising operations, and first began offering franchises in 2002. Its parent company, Counselor Holding, Inc., provides administrative support to Counselor Realty Franchising, Inc. and its affiliate, Counselor Realty, Inc., which has been operating a residential and commercial real estate brokerage business since its incorporation in 1964.

Financial Overview

Investment Range

$22,850 - $105,700

Franchise Fee (Low)

$7,500

Franchise Fee (High)

$15,000

Equipment Costs (Low)

$2,600

Equipment Costs (High)

$37,500

Working Capital

$20,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Counselor Realty Franchising, Inc. has experienced net losses in both 2023 and 2024, showing a slight decline in profitability over the last two years. Cash reserves, total assets, and retained earnings have also decreased during this period. The company's auditors, however, issued an unqualified opinion on the financial statements, indicating that they present fairly in all material respects.

Financing Details

Counselor Realty Franchising, Inc. does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any franchisee notes, leases, or other obligations. Franchisees are responsible for securing their own funding.

Performance Metrics

Total US Locations

11

Franchised Units

5

Corporate Units

6

Avg Square Footage

3,400

Franchising Since

2002

Agreement Terms

Initial Term

5 years

Renewal Term

5 years

Renewal Conditions

To renew their franchise, Counselor Realty Franchising, Inc. franchisees must remain in good standing and apply in writing between 60 to 180 days before their initial term expires. They are required to sign the then-current Franchise Agreement, which may include new minimum Office sales agent requirements and updated fees. Additionally, franchisees must reasonably upgrade and refurbish their office locations to meet current System standards and execute a new guarantee. Counselor Realty Franchising, Inc. also reserves the right to alter the franchisee's territory upon renewal if the population has grown beyond the maximum allowed for a single franchise territory or if the franchisee failed to maintain the minimum number of agents during the previous term.

Training & Support Program

Franchisor Assistance

Counselor Realty Franchising, Inc. provides initial training for franchisees and up to two key personnel, typically ranging from 4 to 8 classroom hours. Supplemental and ongoing training is also available upon request for an hourly fee. Before opening, Counselor Realty Franchising, Inc. advises on displaying its trademarks, procuring initial equipment, and business procedures. Franchisees receive access to the company's Franchise Policy Guidelines and ongoing periodic business advice. Counselor Realty Franchising, Inc. creates dedicated webpages or subdomains for each franchised office and optional agent pages on its corporate website, featuring IDX home search options. Leads generated from the corporate website for a franchisee's region are directed to that office. The franchisor may also provide or require the use of various technology and non-technology related tools and services, for which fees apply.

Initial Training Hours

8

Training Location

A Counselor office or other location designated by Counselor

Ongoing Support

Counselor Realty Franchising, Inc. provides franchisees with periodic advice on key business aspects through various means. Supplemental and ongoing training is available upon request, held at a Counselor office or other designated location, for which franchisees pay an hourly fee per trainer.

Franchise Requirements

Ideal Candidate Profile

Counselor Realty Franchising, Inc. seeks franchisees who possess a bona fide real estate broker's license in good standing for the state where their business will operate. If the franchisee is an entity, it must be legally authorized to conduct business in that state. Franchise candidates are expected to demonstrate strong financial and managerial capabilities.

Industry Experience Required

Yes

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Commercial

Owner Participation

Supervisory

Territory Type

Non-Exclusive

Staff Count

5

Territory Size Requirements

Counselor Realty Franchising, Inc. defines its territories as a designated geographic area. The size of the territory is directly tied to its population, which influences the initial franchise fee. A territory with a population less than 10,000 results in a $7,500 initial fee, while a territory with 10,000 or more people requires a $15,000 initial fee. Population figures are determined using current census data.

Staffing Notes

Counselor Realty Franchising, Inc. franchisees are responsible for staffing their offices with qualified and trained employees and licensed real estate agents, ensuring compliance with all applicable laws and regulations. Franchisees are solely responsible for hiring, firing, and setting wages for their employees, as well as contracting with agents. The size of the office, ranging from 800 to 6,000 square feet, depends on the number of agents the franchisee intends to employ. Before signing the Franchise Agreement, franchisees negotiate a schedule for the minimum number of real estate sales agents required to operate from their office. For any Extension Offices, one of the sales agents must be a supervising broker, and a mutually agreed-upon minimum number of sales agents must be maintained, separate from other office locations.