What is the latest interest rate that Counselor Realty will charge on overdue amounts?
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, if a franchisee fails to pay amounts due to Counselor Realty, the franchisor will charge interest on the overdue amount. The interest will be calculated from the date the payment was due until it is paid.
The interest rate charged will be the lower of two options: either eight percent (8%) per year, or the maximum contract rate of interest allowed by law in the state where the franchisee's business operates. This ensures that the interest rate does not exceed the legal limit in the franchisee's state.
In addition to interest, if Counselor Realty has to initiate a lawsuit to collect the overdue amounts, the franchisee will be responsible for covering Counselor Realty's costs, including reasonable attorney's fees. The FDD also states that interest and late payments are not refundable. Failure to pay amounts owed constitutes grounds for Counselor Realty to terminate the Franchise Agreement.