Are interest and late payments to Counselor Realty 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. Counselor Realty will charge interest on any overdue amount from the due date 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 Counselor Realty business operates.
If Counselor Realty has to commence a suit to collect the amounts due, the franchisee is responsible for covering the costs, including reasonable attorney's fees, in addition to other recoveries. Failure to pay the amounts owed can result in the termination of the Franchise Agreement.
This policy is fairly standard in franchising, as late payment fees and interest are designed to cover the administrative costs and lost revenue associated with delayed payments. Franchisees should ensure they understand the payment terms and due dates to avoid incurring these non-refundable charges and potential legal action or franchise termination.