To whom are the additional funds for three months of operations paid for a Counselor Realty franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
NT**
| (1) Type of Expenditure | (2) Amount | (3) Method of Payment | (4) When Due | (5) To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Fee (see Item 5) | $7,500 to $15,000 | Lump sum | When you sign Franchise Agreement | Counselor |
| Real Estate Lease and ImprovementsA | $600 to $12,500 | (See Note A |
Source: Item 7 — INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the additional funds for three months of operations, ranging from $10,000 to $30,000, are paid to Counselor Realty itself, vendors, employees, suppliers, and utilities. This allocation covers expenses incurred during the initial startup period.
This estimate is intended to cover expenses, including payroll and other operating expenses, during the first three months of operation. However, Counselor Realty does not guarantee that these funds will be sufficient to cover all expenses. The actual amount needed may vary based on factors such as adherence to Counselor Realty's operating methods, the franchisee's management skills, economic conditions, prevailing wage rates, and competition.
Prospective franchisees should carefully consider these factors and create a detailed budget to ensure they have adequate capital to sustain the business during the initial months. It is important to note that these figures are estimates and do not guarantee profitability or even breakeven within this period or at any time. Franchisees should also refer to Item 19 of the FDD for further financial information.