Is interest charged by Counselor Realty on late payments refundable?
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.
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, interest and late payments are not refundable. If a franchisee fails to pay amounts owed to Counselor Realty when due, the company will charge interest on the outstanding balance.
The interest rate applied to late payments is 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. This interest accrues from the date the payment was originally due until it is fully paid.
Furthermore, if Counselor Realty has to initiate a lawsuit to recover the amounts owed, the franchisee will be responsible for covering Counselor Realty's costs, including reasonable attorney's fees, in addition to the original debt and accrued interest. The FDD also states that failure to pay amounts owing constitutes good cause for Counselor Realty to terminate the Franchise Agreement.