What is the procedure for Counselor Realty to collect past due amounts from franchisees?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.7 Interest and Insufficient Funds. Interest shall accrue on any unpaid past due amounts you owe us from the date due until paid, at a rate of the lower of (i) 8% per year; or (ii) the maximum contract rate of interest allowed by law. If any payments are returned for any reason, you will pay us for the amount of the fee charged by Counselor's bank. You also will pay costs, including reasonable attorneys' and litigation expense fees, we incur collecting these past due amounts from you or enforcing this agreement.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, if a franchisee has any unpaid amounts past due, Counselor Realty will charge 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 addition to interest on past due amounts, Counselor Realty will charge franchisees for any fees charged by Counselor Realty's bank if payments are returned for any reason.
Furthermore, the franchisee is responsible for covering Counselor Realty's costs associated with collecting past due amounts or enforcing the franchise agreement, including reasonable attorneys' and litigation expense fees. This means that if Counselor Realty has to take legal action to recover unpaid amounts, the franchisee will be responsible for Counselor Realty's legal fees in addition to the original debt and interest.