What is the financial threshold for triggering different Continuing Agent Fees for Counselor Realty?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, franchisees are required to pay Continuing Agent Fees that vary based on the number of licensed agents operating through their office. The Base Monthly Fee covers the first five agents.
For the 6th through 15th licensed agent, the franchisee must pay $53 per agent per month. This means if a franchisee has 10 agents, they would pay $53 for each of the 5 agents exceeding the initial 5 covered by the Base Monthly Fee.
The fee decreases to $37 per licensed agent per month for the 16th through 35th agents. Once a franchisee has 36 or more licensed agents, the Continuing Agent Fee is further reduced to $32 per agent per month. As an example, the FDD states that a franchisee with 50 agents would pay a total Continuing Agent Fee of $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. Agents operating from Additional or Extension Offices are included in this calculation.