When are Counselor Realty's accounts receivable considered past due?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
t rates and interest rates, amongst others.
Accounts receivable consists of franchise related fees. Accounts receivable are unsecured and the Company charges 8% interest on past due accounts. Accounts receivable are considered past due if not paid within the terms established. Accounts receivable are written off when they are determined to be uncollectible. The allowance for credit losses was $1,574 and $3,724 as
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, accounts receivable are considered past due if they are not paid within the established terms. Counselor Realty charges 8% interest on past due accounts. Accounts receivable consist of franchise related fees and are unsecured.
For a prospective franchisee, this means that Counselor Realty expects timely payments according to the agreed-upon terms. Failure to adhere to these terms will result in the account being classified as past due and subject to an 8% interest charge. It is important for franchisees to understand and meet these payment obligations to avoid incurring additional costs and potential financial strain.
Counselor Realty will write off accounts receivable when they are determined to be uncollectible. The allowance for credit losses was $1,574 and $3,724 as of December 31, 2024 and 2023, respectively. This indicates that Counselor Realty has a process for managing and accounting for potentially uncollectible debts, which is a standard accounting practice to reflect a more accurate financial position.