What is the obligation of Counselor Realty to send an invoice for the Continuing Agent Fee?

According to Counselor Realty's 2025 Franchise Disclosure Document, Counselor Realty is obligated to send an invoice for the Continuing Agent Fee. Specifically, at the beginning of each month, Counselor Realty will send the franchisee an invoice stating the amount of the Continuing Agent Fee owed for that month. The franchisee is then required to pay this amount on or before the 20th day of that month.

The Continuing Agent Fee is based on the number of licensed agents operating through the franchisee's office. The Base Monthly Fee covers the first five agents. The franchisee then pays $53 per agent for agents six through fifteen, $37 per agent for agents sixteen through thirty-five, and $32 per agent for each agent thirty-six and beyond. For example, if a franchisee has 50 licensed agents, the Continuing Agent Fee would be $1,750.

The number of agents operating through the franchisee's office is determined by the number of licensed agents listed with the Minnesota Department of Commerce on the first day of the month. If the franchisee has additional or extension offices, the agents operating from those locations are also included in the calculation of the Continuing Agent Fee. This fee structure is a common practice in the real estate franchise industry, where fees are often tied to agent count to reflect the level of support and resources utilized by the franchise.

It is important for prospective franchisees to understand how the Continuing Agent Fee is calculated and when invoices are sent and due. Franchisees should ensure they have a system in place to track their agent count accurately and make timely payments to avoid potential late fees or other penalties. Understanding these obligations is crucial for managing cash flow and maintaining a positive relationship with Counselor Realty.