How must the initial fee for a Counselor Realty franchise be paid?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) Type of Expenditure | (2) Amount | (3) Method of Payment | (4) When Due | (5) To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Fee (see Item 5) | $7,500 to $15,000 | Lump sum | When you sign Franchise Agreement | Counselor |
Source: Item 7 — INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the initial franchise fee, which ranges from $7,500 to $15,000, must be paid in a lump sum. This payment is due when the Franchise Agreement is signed and is payable to Counselor Realty.
This means that a prospective Counselor Realty franchisee needs to have the full amount of the initial franchise fee available at the time of signing the agreement. Unlike some other franchise systems that may offer financing options for the initial fee, Counselor Realty requires the full payment upfront. This is a fairly standard practice in the franchise industry, as the initial fee covers the franchisor's initial costs of setting up the franchisee and granting them the rights to use the Counselor Realty brand and system.
It is important for potential franchisees to factor this lump sum payment into their initial investment calculations. The FDD also outlines other expenses that will be incurred before opening, such as real estate lease and improvements, fixtures and furnishings, opening inventory of supplies, insurance, training costs, internet development, signage, and professional fees. These costs, combined with the initial franchise fee, contribute to the total initial investment, which ranges from $22,850 to $105,700.
Prospective franchisees should carefully review Item 7 of the FDD to understand all the costs associated with starting a Counselor Realty franchise and plan their finances accordingly. Understanding the payment terms and due dates for each expense is crucial for a smooth launch.