What is the dependency between the number of agents and the Continuing Agent Fee for a Counselor Realty franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
and you must pay us that fee on or before the 20th day of such month.
- 5.3 Continuing Agent Fees. The Base Monthly Fee above includes the first 5 agents operating through your Office. You must pay us a monthly Continuing Agent Fee in an amount equal to $53 per licensed agent for the sixth through 15th licensed agent operating through your Office; $37 per licensed agent for the 16th through 35th licensed agent operating through your Office; and $32 per licensed agent for the 36th and each additional licensed agent operating through your Office. For purposes of clarity, if you have 50 licensed agents operating through your Office 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 pursuant to this Section 5.3, the number of agents operating through your Office for any given month shall be the number of licensed agents listed as operating through your Office with the Minnesota Department of Commerce on the first day of the applicable month. At the beginning of each month, we will send you an invoice for the amount of the Continuing Agent Fee you owe us for the current month, and you must pay us the amount of such Continuing Agent Fee on or before the 20th day of such 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
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the Continuing Agent Fee is directly related to the number of licensed agents operating through a franchisee's office. The Base Monthly Fee covers the first five agents. Beyond that, franchisees pay a monthly Continuing Agent Fee that varies depending on the number of agents.
For the sixth through 15th licensed agent, the fee is $53 per agent. For the 16th through 35th licensed agent, the fee decreases to $37 per agent. For the 36th and each additional licensed agent, the fee further decreases to $32 per agent. This tiered structure incentivizes franchisees to recruit and maintain a larger team of agents, as the cost per agent decreases at higher agent counts.
As an example, the FDD states that if a 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 operating through the office is determined by the number of licensed agents listed with the Minnesota Department of Commerce on the first day of the month. Counselor Realty will send an invoice each month for the Continuing Agent Fee, which is due by the 20th of the month. Any agents operating from Additional Office or Extension Office locations also count towards the total for calculating this fee.