What does Note H refer to regarding the Counselor Realty Late Charges?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, Note H clarifies the details regarding late charges. If a franchisee fails to pay any amount due to Counselor Realty on time, they will be charged interest from the date the payment was due until it is paid. 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.
Furthermore, if Counselor Realty has to commence a lawsuit to collect the overdue amounts, the franchisee will be responsible for covering Counselor Realty's costs, including reasonable attorney's fees, in addition to the original amount owed. The FDD explicitly states that interest and late payments are nonrefundable.
Importantly, the failure to pay amounts owed to Counselor Realty constitutes a valid reason for Counselor Realty to terminate the Franchise Agreement, as detailed in Item 17. This highlights the importance of franchisees managing their finances carefully and ensuring timely payments to avoid potential penalties and the risk of losing their franchise.