What is the formula for calculating the Continuing Agent Fee for Counselor Realty?
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 calculated based on a tiered structure related to the number of licensed agents operating through the franchisee's office. The base monthly fee covers the first five agents.
For the 6th through 15th licensed agent, the franchisee pays $53 per agent. For the 16th through 35th licensed agent, the fee is $37 per agent. For the 36th agent and each additional agent beyond that, the fee is $32 per agent. Counselor Realty will invoice franchisees monthly for these fees, which are due by the 20th of each month.
For example, if a franchisee has 50 licensed agents, the Continuing Agent Fee would be 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), totaling $1,750. This fee structure incentivizes franchisees to grow their agent base, as the per-agent fee decreases at higher agent counts.
It's important to note that if Counselor Realty has approved any Additional Office or Extension Office locations, the licensed agents operating from those locations are included in the total count of agents for the purpose of calculating the Continuing Agent Fee. 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 applicable month.