Are franchisees required to pay for Counselor Realty legal fees?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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| (1) Name of Fee | (2) Amount | (3) Due Date | (4) Remarks |
|---|---|---|---|
| Base Monthly Fee | $371 per month | Payable monthly by the 20th day of the month | See Note A |
| Continuing Agent Fee | $32 to $53 per licensed agent operating from or through your Office | Payable monthly by the 20th day of the month | See Note B |
| (1) | (2) | (3) | (4) |
| Name of Fee | Amount | Due Date | Remarks |
| Late Charges | Lesser of 8% per year or maximum contract rate of interest allowed by law | Payable when billed | See Note H |
| Insufficient Funds/ Return Fees | Amount of the insufficient funds or return fee charged by Counselor's bank | Payable when billed | See Note I |
| Training Fees | $175 per hour, plus all travel, living and incidental expenses | Payable when billed | See Note J |
| Legal Fees | As incurred | Payable when billed | See Note K |
| (1) | (2) | (3) | (4) |
| Name of Fee | Amount | Due Date | Remarks |
| Late Charges | Lesser of 8% per year or maximum contract rate of interest allowed by law | Payable when billed | See Note H |
| Insufficient Funds/ Return Fees | Amount of the insufficient funds or return fee charged by Counselor's bank | Payable when billed | See Note I |
| Training Fees | $175 per hour, plus all travel, living and incidental expenses | Payable when billed | See Note J |
| Legal Fees | As incurred | Payable when billed | See Note K |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, franchisees may be required to pay legal fees. The table in Item 6 outlines various fees, including legal fees, that a franchisee may incur. Specifically, franchisees are responsible for legal fees 'as incurred' and these fees are 'payable when billed.' Note K refers to the fact that the prevailing party in any arbitration regarding the Franchise Agreement is entitled to recover its costs including its reasonable attorneys' fees.
This means that if Counselor Realty commences a suit to collect amounts due, they are entitled to recover costs, including reasonable attorneys' fees. Also, if a franchisee is involved in any arbitration regarding the Franchise Agreement, the prevailing party is entitled to recover costs, including reasonable attorneys' fees.
This is a fairly standard practice in franchising. It is important for prospective franchisees to understand these potential costs and factor them into their financial planning. Franchisees should seek legal counsel to fully understand their obligations and rights under the Franchise Agreement.