What is the financial threshold for the second tier of Continuing Agent Fees for Counselor Realty?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Minn
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the Continuing Agent Fees are structured in tiers based on the number of licensed agents operating through the franchisee's office. The second tier of Continuing Agent Fees applies when a franchisee has between 16 and 35 licensed agents operating through their office.
For each agent within this range, the franchisee must pay a monthly Continuing Agent Fee of $37 per licensed agent. This fee is in addition to the Base Monthly Fee, which covers the first five agents. The Continuing Agent Fees are designed to scale with the size of the franchisee's operation, reflecting the increased support and resources potentially required from Counselor Realty as the number of agents grows.
For example, if a Counselor Realty franchisee has 50 licensed agents, the Continuing Agent Fee is calculated as follows: $53 multiplied by 10 (for agents 6 through 15), plus $37 multiplied by 20 (for agents 16 through 35), plus $32 multiplied by 15 (for agents 36 and beyond), totaling $1,750. This tiered structure incentivizes franchisees to grow their agent base while also ensuring that Counselor Realty is compensated for the additional support provided to larger offices. The number of agents is determined by the number of licensed agents listed with the Minnesota Department of Commerce on the first day of the month.