How are legal fees determined for a Counselor Realty franchise?
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 |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, franchisees may incur legal fees. The FDD outlines that legal fees are determined 'as incurred' and are payable when billed. This means that a Counselor Realty franchisee will be responsible for covering the costs of legal services that they use, with the amount depending on the specific services required and the rates of the attorneys providing those services.
This arrangement is typical in franchising, where franchisees are generally responsible for their own legal costs. These costs can arise from various situations, such as disputes with the franchisor, lease negotiations, or other business-related legal matters. The franchisee should budget for potential legal expenses and understand that these costs can vary significantly depending on the circumstances.
It is important for prospective Counselor Realty franchisees to seek independent legal advice before signing the Franchise Agreement. Understanding the terms of the agreement and potential legal obligations is crucial. Additionally, franchisees should maintain open communication with Counselor Realty and attempt to resolve any disputes amicably to avoid incurring unnecessary legal fees. Furthermore, the prevailing party in any arbitration regarding the Franchise Agreement is entitled to recover its costs including its reasonable attorneys' fees.