How are monthly franchise fees billed to Counselor Realty franchisees?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company's revenues are comprised of initial franchise fees and monthly franchise and metro advertising fees. Initial franchise fees are a onetime fee paid by new franchisees and are recognized over the term of the contract, in the period earned. Monthly franchise and metro advertising fees are billed monthly and recognized over time, in the period earned.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, monthly franchise and metro advertising fees are billed monthly and recognized over time, specifically in the period they are earned.
For a Counselor Realty franchisee, this means that you will receive a bill each month for your franchise fees and, if applicable, metro advertising fees. The amount due will reflect the services and brand access you've utilized during that specific month. This billing structure is standard practice in the franchise industry, aligning revenue recognition with the period in which the franchisor provides ongoing support and brand usage.
It's important to note that Counselor Realty also charges 8% interest on past due accounts, providing an incentive for franchisees to pay their monthly fees on time. Additionally, if a franchisee is located within the 11-county metropolitan area of the Twin Cities, there is a monthly metro advertising fee per licensed agent.