Does Counselor Realty have to provide any justification for increasing the Mobile App Fee?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
If your Office (or any Additional Office or Extension Office) is located in one of the aforementioned counties, or if you elect to utilize the Mobile App, you must pay us a Mobile App Fee equal to the costs incurred by Counselor to initiate and continue your Mobile App service, including one-time setup fees and monthly data/phone fees. The amount of the Mobile App Fee may be increased during the term of this Agreement by Counselor from time to time in its sole discretion. At the beginning of each month, we will send you an invoice for the amount of the Mobile App Fee you owe us for the prior month, and you must pay us the amount of such Mobile App Fee on or before the 20th day of such month.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, Counselor Realty has the discretion to increase the Mobile App Fee during the term of the agreement. The document states that the amount of the Mobile App Fee may be increased by Counselor Realty from time to time in its sole discretion.
This means that Counselor Realty is not explicitly obligated to provide a specific justification or reason for increasing the Mobile App Fee. The decision to increase the fee is at their discretion. However, the Mobile App Fee is equal to the costs incurred by Counselor to initiate and continue the franchisee's Mobile App service, including one-time setup fees and monthly data/phone fees.
Prospective franchisees should be aware of this clause, as it gives Counselor Realty the power to raise the Mobile App Fee, potentially impacting the franchisee's operating costs. It would be prudent for a potential franchisee to inquire about the typical frequency and magnitude of such increases, as well as the factors that Counselor Realty considers when deciding to adjust the fee. Understanding these aspects can help in forecasting expenses and assessing the financial viability of the franchise.
It's important to note that while Counselor Realty has the discretion to increase the fee, franchisees are invoiced monthly and must pay the amount due by the 20th of the month. Any unpaid amounts are subject to interest. Franchisees should factor in potential Mobile App Fee increases when budgeting and managing their finances.