What interest rate does Counselor Realty charge on past due accounts?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
t rates and interest rates, amongst others.
Accounts receivable consists of franchise related fees. Accounts receivable are unsecured and the Company charges 8% interest on past due accounts. Accounts receivable are considered past due if not paid within the terms established. Accounts receivable are written off when they are determined to be uncollectible. The allowance for credit losses was $1,574 and $3,724 as
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the company charges 8% interest on past due accounts receivable. Accounts receivable consists of franchise related fees. These receivables are considered past due if they are not paid within the established terms. Counselor Realty will write off accounts receivable when they are determined to be uncollectible.
For a prospective franchisee, this means that if you fail to pay your franchise-related fees on time, Counselor Realty will charge you an 8% interest on the outstanding balance. It is important to understand the payment terms outlined in the franchise agreement to avoid incurring these interest charges.
Additionally, the FDD mentions that the allowance for credit losses was $1,574 and $3,724 as of December 31, 2024, and 2023, respectively. This indicates the amount that Counselor Realty anticipates they may not collect from outstanding receivables. While this doesn't directly impact a franchisee who pays on time, it provides insight into the company's financial management and risk assessment related to franchisee payments.