How are legal fees determined for Counselor Realty?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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| (1) Name of Fee | (2) Amount | (3) Due Date | (4) Remarks | |---|---|---|---| | Base Monthly Fee | $371 per month | Payable monthly by the 20th day of the month | See Note A | | Continuing Agent Fee | $32 to $53 per licensed agent operating from or through your Office | Payable monthly by the 20th day of the month | See Note B | | (1) | (2) | (3) | (4) | | Name of Fee | Amount | Due Date | Remarks | | Late Charges | Lesser of 8% per year or maximum contract rate of interest allowed by law | Payable when billed | See Note H | | Insufficient Funds/ Return Fees | Amount of the insufficient funds or return fee charged by Counselor's bank | Payable when billed | See Note I | | Training Fees | $175 per hour, plus all travel, living and incidental expenses | Payable when billed | See Note J | | Legal Fees | As incurred | Payable when billed | See Note K | | (1) | (2) | (3) | (4) | | Name of Fee | Amount | Due Date | Remarks | | Late Charges | Lesser of 8% per year or maximum contract rate of interest allowed by law | Payable when billed | See Note H | | Insufficient Funds/ Return Fees | Amount of the insufficient funds or return fee charged by Counselor's bank | Payable when billed | See Note I | | Training Fees | $175 per hour, plus all travel, living and incidental expenses | Payable when billed | See Note J | | Legal Fees | As incurred | Payable when billed | See Note K | Notes to Item 6, above:
- A. You must pay us a Base Monthly Fee of $371. This fee includes the first 5 licensed agents operating through your Office.
- B.
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, franchisees are responsible for legal fees that they incur. These fees are charged 'as incurred' and are payable when billed. This means that franchisees will be invoiced for legal services as those services are used.
This arrangement is typical in franchising, where franchisees often bear the costs of legal services they require, such as for contract review, dispute resolution, or compliance matters. The 'as incurred' basis means that the amount can vary significantly depending on the franchisee's specific circumstances and the complexity of any legal issues that arise.
Additionally, the FDD states that the prevailing party in any arbitration regarding the Franchise Agreement is entitled to recover its costs, including reasonable attorneys' fees. This clause could have significant financial implications, as it means that a franchisee who wins an arbitration case against Counselor Realty may be able to recover their legal fees, while a franchisee who loses the case will likely be responsible for both their own legal fees and potentially Counselor Realty's legal fees.