How is the Continuing Agent Fee determined for a Counselor Realty franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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- B. You must pay a monthly Continuing Agent Fee to Counselor based upon the number of licensed agents operating through your Office (including any Additional Offices and Extension Offices) at any time during the month as follows: $53 per licensed agent for the sixth through 15th licensed agent operating through your Office(s); $37 per licensed agent for the 16th through 35th licensed agent operating through your Office(s); and $32 per licensed agent for the 36th and each additional licensed agent operating through your Office(s). For purposes of clarity, if you have 50 licensed agents operating through your Office(s) for a certain month, your Continuing Agent Fee for that month would be $1,750 ($53 multiplied by 10, plus $37 multiplied by 20, plus $32 multiplied by 15). For purposes of calculating the Continuing Agent Fee, the number of agents operating through your Office(s) for any given month shall be the number of licensed agents listed as operating through your Office(s) with the Minnesota Department of Commerce on the first day of the applicable month. If Counselor has consented to any Additional Office locations or Extension Office locations, any licensed agents operating from any such Additional Office locations or Extension Office locations will be counted in the number of agents operating through your Office for purposes of the Continuing Agent Fee. You must notify Counselor immediately in writing each time a licensed agent begins operating through your Office(s) (including any Additional Offices or Extension Offices
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, in addition to a base monthly fee, franchisees must pay a Continuing Agent Fee that varies depending on the number of licensed agents operating through their office, including any additional or extension offices. The fee structure is tiered: $53 per licensed agent for the 6th through 15th agent, $37 per licensed agent for the 16th through 35th agent, and $32 per licensed agent for the 36th and each additional agent.
For example, if a Counselor Realty franchisee has 50 licensed agents, the Continuing Agent Fee would be $1,750, calculated as follows: $53 multiplied by 10 (agents 6-15), plus $37 multiplied by 20 (agents 16-35), plus $32 multiplied by 15 (agents 36-50). The number of agents is determined by the number listed with the Minnesota Department of Commerce on the first day of the month. Franchisees must notify Counselor Realty in writing each time a licensed agent begins operating through their office.
The Continuing Agent Fee is payable monthly by the 20th day of the month. This fee structure incentivizes franchisees to grow their agent base, but also means that costs increase as the number of agents increases. Prospective franchisees should carefully consider their growth plans and agent acquisition strategies to accurately forecast these ongoing fees. Understanding how agent count affects the Continuing Agent Fee is crucial for financial planning and profitability assessments.