What is the obligation of a Counselor Realty franchisee to pay the Base Monthly Fee?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
fees periodically for rights licensed or services provided to others.
5. FEES.
5.1 Initial Franchise Fee. We acknowledge receipt from you of an Initial Franchise Fee in the amount of $____________. Except as provided in Section 1.2, the Initial Franchise Fee is nonrefundable.
5.2 Base Monthly Fee. You must pay us a Base Monthly Fee of $371. At the beginning of each month, we will send you an invoice for the Base Monthly Fee, and you must pay us that fee on or before the 20th day of such month.
5.3 Continuing Agent Fees. The Base Monthly Fee above includes the first 5 agents operating through your Office. You must pay us a monthly Continuing Agent Fee in an amount equal to $53 per licensed agent for the sixth through 15th licensed agent operating through your Office; $37 per licensed agent for the 16th through 35th licensed agent operating through your Office; and $32 per licensed agent for the 36th and each additional licensed agent operating through your Office. For purposes of clarity, if you have 50 licensed agents operating through your Office for a certain month, your Continuing Agent Fee for that month would be $1,750 ($53 multiplied by 10, plus $37 multiplied by 20, plus $32 multiplied by 15). For purposes of calculating the Continuing Agent Fee pursuant to this Section 5.3, the number of agents operating through your Office for any given month shall be the number of licensed agents listed as operating through your Office with the Minnesota Department of Commerce on the first day of the applicable month. At the beginning of each month, we will send you an invoice for the amount of the Continuing Agent Fee you owe us for the current month, and you must pay us the amount of such Continuing Agent Fee on or before the 20th day of such month. If Counselor has consented to any Additional Office locations or Extension Office locations, any licensed agents operating from any such Additional Office locations or Extension Office locations will be counted in the number of agents operating through your Office for purposes of this Section 5.3.
5.4 Advertising Fees.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, a franchisee must pay a Base Monthly Fee of $371. Counselor Realty will send an invoice at the beginning of each month, and the franchisee is obligated to pay the fee on or before the 20th day of that month. This Base Monthly Fee covers the first five agents operating through the franchisee's office.
In addition to the Base Monthly Fee, Counselor Realty franchisees are also required to pay Continuing Agent Fees if they have more than five agents. The Continuing Agent Fee is $53 per licensed agent for the sixth through 15th agent, $37 per licensed agent for the 16th through 35th agent, and $32 per licensed agent for the 36th and each additional licensed agent. For example, if a franchisee has 50 licensed agents, the Continuing Agent Fee would be $1,750, calculated as follows: ($53 * 10) + ($37 * 20) + ($32 * 15).
The number of agents operating through the office is determined by the number of licensed agents listed with the Minnesota Department of Commerce on the first day of the month. If Counselor Realty has approved any Additional Office or Extension Office locations, the licensed agents operating from those locations are included in the total count for calculating the Continuing Agent Fees. This ensures that all agents affiliated with the franchise are accounted for when determining the monthly fees owed to Counselor Realty.