Does Counselor Realty charge interest on all unpaid amounts, or only on Mobile App Fees?
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 all unpaid past due amounts owed to them, not just on Mobile App Fees. The interest rate is the lower of 8% per year or the maximum contract rate of interest allowed by law. This interest accrues from the date the payment was due until it is paid in full.
In addition to interest on past due amounts, Counselor Realty also charges fees for returned payments. If any payment is returned for any reason, the franchisee is responsible for the amount of the fee charged by Counselor Realty's bank. The franchisee is also responsible for covering any costs Counselor Realty incurs while collecting past due amounts, including reasonable attorney and litigation expenses.
This policy is fairly standard in franchising, as franchisors need to ensure timely payments to maintain their own financial stability. Prospective Counselor Realty franchisees should be aware of these terms and ensure they have sufficient capital and cash flow to meet all payment deadlines to avoid incurring interest, fees, and potential legal expenses.