What constitutes good cause for Counselor Realty to terminate the Franchise Agreement?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- H. Counselor will charge you interest on any amount due to Counselor not paid when due, from the date due until paid, at a rate of the lower of eight percent (8%) per year or the maximum contract rate of interest allowed by law in the state where your Business is operated. If Counselor commences suit to collect amounts due, it is entitled to recover its costs, including reasonable attorneys' fees, in addition to its other recoveries. Interest and late payments are not refundable. Your failure to pay amounts owing constitutes good cause for Counselor to terminate the Franchise Agreement. See Item 17.
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, failure to pay amounts owed to Counselor Realty constitutes good cause for termination of the Franchise Agreement. Specifically, if a franchisee fails to pay amounts due, Counselor Realty has grounds to terminate the agreement, as detailed in Item 17 of the FDD.
In practical terms, this means that a Counselor Realty franchisee must ensure timely payment of all fees and other financial obligations to the franchisor. These obligations could include, but are not limited to, Base Monthly Fees, Continuing Agent Fees, Advertising Fees, Website Fees, Mobile App Fees, training fees, and any other fees outlined in Item 6 of the FDD. Failure to meet these payment obligations can have severe consequences, including the loss of the franchise.
It is important for prospective franchisees to carefully review all payment terms and due dates outlined in the Franchise Agreement and related documents. Understanding these obligations and maintaining diligent financial management is crucial to avoid potential default and termination of the franchise agreement. Franchisees should also be aware of the interest charges on late payments, set at the lower of 8% per year or the maximum contract rate of interest allowed by law, which can further increase the financial burden of late payments.