Are there any limits on the amount of legal fees that Counselor Realty can charge?
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 |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, franchisees may incur legal fees. The FDD states that legal fees are charged 'as incurred' and are payable when billed. This means that Counselor Realty does not specify a maximum amount for legal fees; instead, franchisees are responsible for the actual legal costs that arise.
This arrangement is fairly standard in franchising, where franchisees often bear the cost of legal services they utilize. The lack of a specified limit means that the amount can vary significantly depending on the nature and complexity of the legal issues. These fees could be related to disputes, compliance matters, or other legal needs that arise during the operation of the franchise.
Prospective Counselor Realty franchisees should be aware that these legal fees can potentially be substantial and should factor this uncertainty into their financial planning. It would be prudent to discuss with Counselor Realty what types of situations might lead to incurring such fees and to consult with a legal professional to understand the potential scope and implications of uncapped legal expenses.