What happens if a franchisee fails to pay amounts owing to Counselor Realty?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- H. Counselor will charge you interest on any amount due to Counselor not paid when due, from the date due until paid, at a rate of the lower of eight percent (8%) per year or the maximum contract rate of interest allowed by law in the state where your Business is operated. If Counselor commences suit to collect amounts due, it is entitled to recover its costs, including reasonable attorneys' fees, in addition to its other recoveries. Interest and late payments are not refundable. Your failure to pay amounts owing constitutes good cause for Counselor to terminate the Franchise Agreement. See Item 17.
- I. If any of your payments to Counselor are returned for any reason, you will pay us an additional fee for the amount charged by Counselor's bank.
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, franchisees who fail to pay amounts due to Counselor Realty will incur specific penalties and risk potential termination of their franchise agreement. Counselor Realty will charge interest on any overdue amount from the date it was due until it is paid. The interest rate will be the lower of 8% per year or the maximum contract rate of interest allowed by law in the state where the franchisee's business operates.
If Counselor Realty has to commence a lawsuit to collect the overdue amounts, the franchisee is responsible for covering Counselor Realty's costs, including reasonable attorney's fees, in addition to the original amount due. Furthermore, any returned payments from the franchisee will result in an additional fee equivalent to the amount charged by Counselor Realty's bank for the returned payment. These interest charges and late payment fees are non-refundable.
Importantly, the FDD states that failure to pay amounts owed to Counselor Realty constitutes sufficient grounds for Counselor Realty to terminate the Franchise Agreement. This highlights the critical importance of franchisees managing their finances and ensuring timely payments to avoid jeopardizing their franchise.