Does Counselor Realty specify the method of payment for legal fees?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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| (1) Name of Fee | (2) Amount | (3) Due Date | (4) Remarks | |---|---|---|---| | Base Monthly Fee | $371 per month | Payable monthly by the 20th day of the month | See Note A | | Continuing Agent Fee | $32 to $53 per licensed agent operating from or through your Office | Payable monthly by the 20th day of the month | See Note B | | (1) | (2) | (3) | (4) | | Name of Fee | Amount | Due Date | Remarks | | Late Charges | Lesser of 8% per year or maximum contract rate of interest allowed by law | Payable when billed | See Note H | | Insufficient Funds/ Return Fees | Amount of the insufficient funds or return fee charged by Counselor's bank | Payable when billed | See Note I | | Training Fees | $175 per hour, plus all travel, living and incidental expenses | Payable when billed | See Note J | | Legal Fees | As incurred | Payable when billed | See Note K | | (1) | (2) | (3) | (4) | | Name of Fee | Amount | Due Date | Remarks | | Late Charges | Lesser of 8% per year or maximum contract rate of interest allowed by law | Payable when billed | See Note H | | Insufficient Funds/ Return Fees | Amount of the insufficient funds or return fee charged by Counselor's bank | Payable when billed | See Note I | | Training Fees | $175 per hour, plus all travel, living and incidental expenses | Payable when billed | See Note J | | Legal Fees | As incurred | Payable when billed | See Note K | Notes to Item 6, above:
- A. You must pay us a Base Monthly Fee of $371. This fee includes the first 5 licensed agents operating through your Office.
- B. You must pay a monthly Continuing Agent Fee to Counselor based upon the number of licensed agents operating through your Office (including any Additional Offices and Extension Offices) at any time during the month as follows: $53 per licensed agent for the sixth through 15th licensed agent operating through your Office(s); $37 per licensed agent for the 16th through 35th licensed agent operating through your Office(s); and $32 per licensed agent for the 36th and each additional licensed agent operating through your Office(s). For purposes of clarity, if you have 50 licensed agents operating through your Office(s) 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).
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, legal fees are payable when billed. The specific amount of legal fees will depend on the circumstances. The FDD also states that the prevailing party in any arbitration regarding the Franchise Agreement is entitled to recover its costs, including reasonable attorneys' fees.
This means that as a Counselor Realty franchisee, you will be responsible for paying legal fees as they are incurred. These fees could arise from various situations, such as disputes with employees, vendors, or customers, or from the need to enforce the Franchise Agreement. The fact that legal fees are payable when billed means that you should be prepared to pay these expenses promptly to avoid late payment penalties, as Counselor Realty will charge interest on any overdue amounts.
It is important to note that the FDD does not specify the exact types of legal services that these fees might cover. It is also important to note that if Counselor Realty commences a suit to collect amounts due, it is entitled to recover its costs, including reasonable attorneys' fees, in addition to its other recoveries. This means that if you fail to pay amounts owed to Counselor Realty, you could be responsible for their legal fees as well as your own.
Prospective franchisees should carefully consider the potential for incurring legal fees and factor this into their financial planning. It would be prudent to discuss with Counselor Realty what types of situations might lead to legal expenses and to get an estimate of the potential costs involved. Understanding these potential costs will help you to better prepare for the financial obligations of operating a Counselor Realty franchise.