What is the interest rate charged on past due amounts owed to Counselor Realty?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.7 Interest and Insufficient Funds. Interest shall accrue on any unpaid past due amounts you owe us from the date due until paid, at a rate of the lower of (i) 8% per year; or (ii) the maximum contract rate of interest allowed by law. If any payments are returned for any reason, you will pay us for the amount of the fee charged by Counselor's bank. You also will pay costs, including reasonable attorneys' and litigation expense fees, we incur collecting these past due amounts from you or enforcing this agreement.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, any unpaid past due amounts owed to Counselor Realty will accrue interest from the date the payment was due until it is paid. The interest rate will be the lower of two options: either 8% per year, or the maximum contract rate of interest allowed by law. This means a franchisee could be charged up to 8% interest annually on any late payments, but if state law sets a lower maximum interest rate, that lower rate would apply instead.
In addition to interest on past due amounts, Counselor Realty also charges fees for returned payments. If any payments from a franchisee are returned for any reason, the franchisee will be responsible for covering the amount of the fee charged by Counselor Realty's bank.
Furthermore, if Counselor Realty has to take action to collect past due amounts or enforce the franchise agreement, the franchisee will be responsible for paying all associated costs. These costs include reasonable attorneys' fees and litigation expenses incurred by Counselor Realty. This could potentially add a significant financial burden on top of the original past due amount and accrued interest.