The DHCP Offer should be unicast (and not broadcast) unless the client equipment does not support it. It is most likely a limitation on the end-equipment and not on the Cisco 7206VXR router acting as DHCP Relay.
Check RFC1542 (3.1.1 The BROADCAST flag).
Use a packet sniffer to confirm that the end-equipment is indeed sending DHCP Request with the Broadcast flag set...