What is the maximum interest rate that Counselor Realty can charge on past due amounts?

According to Counselor Realty's 2025 Franchise Disclosure Document, interest will accrue on any unpaid past due amounts from the date the payment was due until it is paid. The interest rate will be the lower of two options: either 8% per year, or the maximum contract rate of interest allowed by law.

This means that if a Counselor Realty franchisee fails to pay fees or other amounts owed to the company on time, they will be charged interest on the outstanding balance. The specific interest rate charged will depend on the legal limits in the relevant jurisdiction, but it will not exceed 8% per year. This is a fairly standard practice in franchising, as it incentivizes franchisees to make timely payments and compensates the franchisor for the time value of money and the administrative costs associated with collecting overdue amounts.

In addition to interest on past due amounts, Counselor Realty also charges a fee if any payments are returned for any reason, such as insufficient funds. The franchisee is responsible for the amount of the fee charged by Counselor Realty's bank. Furthermore, the franchisee is responsible for covering costs, including reasonable attorneys' and litigation expense fees, that Counselor Realty incurs while collecting these past due amounts or enforcing the franchise agreement.