When are legal fees for Counselor Realty payable?
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 |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, legal fees are payable when billed. The amount of these fees is determined as they are incurred. This means that a Counselor Realty franchisee will be invoiced for legal fees as those fees arise, rather than paying a fixed amount upfront or on a set schedule.
This 'as incurred' billing structure is common when the franchisor's legal costs are variable or depend on specific actions taken by the franchisee. For example, if Counselor Realty has to take legal action to enforce the franchise agreement due to a franchisee's non-compliance, that franchisee would likely be responsible for those legal fees.
Prospective franchisees should be aware that legal fees can arise in various situations, such as disputes, non-compliance issues, or during the renewal or transfer of the franchise agreement. It is advisable to budget for potential legal expenses and to fully understand the circumstances under which these fees may be incurred. Reviewing Item 17 in the FDD, as referenced in Note H, may provide additional context regarding the circumstances that could lead to the assessment of legal fees.