How often does Counselor Realty evaluate its pooling decisions for receivables?

According to Counselor Realty's 2025 Franchise Disclosure Document, the company continuously evaluates its decisions regarding the pooling of receivables and adjusts them as needed from period to period as risk characteristics change. This practice relates to how Counselor Realty estimates credit losses on its accounts receivable.

Counselor Realty groups its receivables based on similar risk characteristics to estimate expected credit losses. However, if a receivable does not align with the risk profile of the pool, it is measured individually. This continuous evaluation and adjustment process ensures that the allowance for credit losses accurately reflects the current risk environment.

For a prospective Counselor Realty franchisee, this means that the franchisor is actively monitoring the risk associated with outstanding payments from franchisees. This proactive approach to managing receivables could minimize potential financial losses for the company. It also suggests that Counselor Realty is attentive to changes in franchisees' financial situations and adjusts its financial reporting accordingly.