What costs are Counselor Realty franchisees responsible for if they fail to pay on time?
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, franchisees are responsible for specific costs if they fail to make timely payments. Interest accrues on any unpaid past due amounts from the date the payment was due until it is 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, if any payments are returned for any reason, the franchisee must pay the amount of the fee charged by Counselor Realty's bank for the returned payment. This means that franchisees will be responsible for covering any administrative costs incurred by the franchisor due to the returned payment.
Furthermore, Counselor Realty franchisees are responsible for covering costs, including reasonable attorneys' and litigation expense fees, that Counselor Realty incurs while collecting past due amounts or enforcing the franchise agreement. This could potentially include significant legal fees if Counselor Realty has to take legal action to recover the unpaid amounts.