What does 'as incurred' mean in relation to Counselor Realty legal fees?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
| (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 |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, legal fees are charged 'as incurred.' This means that franchisees are responsible for paying legal fees to Counselor Realty as those fees arise. The FDD states that these legal fees are payable when billed.
This arrangement means the franchisee will only pay for legal services they actually use or that are required for their franchise operation. The amount can vary significantly depending on the specific legal needs or actions taken. For example, if Counselor Realty has to take legal action against a franchisee for non-compliance, the franchisee may be responsible for Counselor Realty's legal fees.
It is important for a prospective Counselor Realty franchisee to understand the circumstances under which these legal fees might be incurred. While the FDD does not specify the exact situations that would trigger these fees, it is advisable to discuss this with the franchisor to get a clearer understanding of potential legal costs and how to mitigate them. Additionally, the franchisee should factor in a budget for potential legal expenses to avoid unexpected financial strain.