What interest rate does Counselor Realty charge on overdue amounts?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: OTHER FEES]
- 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.
- J. At your request, Counselor will provide you and up to two of your key personnel initial training (the amount of such initial training shall be as determined by Counselor) at a "Counselor" office or other location designated by Counselor, at any mutually convenient time. At your request, Counselor will provide supplemental initial and/or ongoing training for you and/or your key personnel at a "Counselor" office or other location designated by Counselor, at any mutually convenient time. You must pay Counselor a fee for training (including initial training) in the amount of $175 per trainer per hour. In addition, you must pay all travel, living and incidental expenses you and your employees, and our trainers, incur in connection with training, which Counselor estimates could range from $0 (if you and our trainers do not have to travel to attend training) to $750 per person per day. The exact amount of the fees and costs are unknown and may vary depending upon factors, such as third-party vendors selected. You and your employees will not be paid by Counselor during training.
- K. The prevailing party in any arbitration regarding the Franchise Agreement is entitled to recover its costs including its reasonable attorneys' fees.
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the interest rate charged on overdue amounts is the lesser of 8% per year or the maximum contract rate of interest allowed by law in the state where the franchisee's business is operated. This interest accrues from the date the payment was due until it is paid in full.
In addition to interest, Counselor Realty may also pursue legal action to collect overdue amounts, in which case the franchisee would be responsible for covering Counselor Realty's costs, including reasonable attorney's fees. It is important to note that interest and late payments are non-refundable.
Failure to pay amounts owed to Counselor Realty constitutes grounds for termination of the Franchise Agreement, as detailed in Item 17 of the FDD. This highlights the importance of franchisees managing their finances carefully and ensuring timely payments to avoid penalties and potential termination of their franchise agreement.
The table in Item 6 also lists 'Late Charges' with the same interest rate details: 'Lesser of 8% per year or maximum contract rate of interest allowed by law,' payable when billed, reinforcing the information provided in the paragraph format.