Does Counselor Realty charge interest on late payments?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.7 Interest and Insufficient Funds. Interest shall accrue on any unpaid past due amounts you owe us from the date due until paid, at a rate of the lower of (i) 8% per year; or (ii) the maximum contract rate of interest allowed by law. If any payments are returned for any reason, you will pay us for the amount of the fee charged by Counselor's bank. You also will pay costs, including reasonable attorneys' and litigation expense fees, we incur collecting these past due amounts from you or enforcing this agreement.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, interest accrues on any unpaid past due amounts from the date they are due until they are paid. The interest rate is the lower of either 8% per year or the maximum contract rate of interest allowed by law.
In addition to interest on past due amounts, Counselor Realty also charges a fee if any payments are returned for any reason due to insufficient funds. The franchisee is responsible for the amount of the fee charged by Counselor Realty's bank.
Furthermore, if a franchisee fails to pay amounts due, they will be responsible for covering costs incurred by Counselor Realty while collecting past due amounts. These costs include reasonable attorneys' and litigation expense fees for collecting past due amounts or enforcing the franchise agreement.