What is the maximum contract rate of interest allowed by law that Counselor Realty can charge?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) Name of Fee | (2) Amount | (3) Due Date | (4) Remarks |
|---|---|---|---|
| Late Charges | Lesser of 8% per year or maximum contract rate of interest allowed by law | Payable when billed | See Note H |
- 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, Counselor Realty can charge interest on the overdue amount. The interest rate will be the lower of 8% per year or the maximum contract rate of interest allowed by law in the state where the franchisee's business operates. This interest accrues from the date the payment was due until it is paid in full.
This means that a Counselor Realty franchisee could face interest charges on late payments, but the rate will not exceed either 8% annually or the legal maximum in their state. The franchisee is responsible for knowing the maximum legal interest rate in their state to ensure they are not overcharged. Additionally, the FDD states that interest and late payments are not refundable.
It is also important to note that if Counselor Realty has to commence a suit to collect the amounts due, the franchisee will be responsible for covering the costs, including reasonable attorney's fees, in addition to the other amounts owed. The Franchise Agreement can be terminated if the franchisee fails to pay the amounts owed.