What is the maximum interest rate for late charges for a Counselor Realty franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
| (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 |
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 late charges on overdue amounts. The interest rate applied to these late charges is the lesser of two options: 8% per year, or the maximum contract rate of interest allowed by law in the state where the Counselor Realty business operates. This means that the actual interest rate could be lower than 8% depending on state regulations. These late charges are payable when billed and are non-refundable.
This policy is fairly standard in franchising, as franchisors need to ensure timely payments from franchisees to maintain cash flow and operational stability. The inclusion of a maximum interest rate based on state law protects franchisees from potentially excessive charges, ensuring compliance with local regulations.
Prospective Counselor Realty franchisees should be aware of these late charge terms and ensure they understand the payment schedule to avoid incurring these fees. It would be prudent to check the specific laws in their state regarding maximum contract interest rates to fully understand the potential cost of late payments. Failure to pay amounts owed can be grounds for termination of the Franchise Agreement, as detailed in Item 17 of the FDD.