When are training costs due for a Counselor Realty franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
NT**
| (1) Type of Expenditure | (2) Amount | (3) Method of Payment | (4) When Due | (5) To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Fee (see Item 5) | $7,500 to $15,000 | Lump sum | When you sign Franchise Agreement | Counselor |
| Real Estate Lease and ImprovementsA | $600 to $12,500 | (Se |
Source: Item 7 — INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, training costs, which range from $0 to $6,200, are due as incurred. For training costs paid directly to Counselor Realty, payment is due as billed. For training costs paid to other vendors, payment is due as incurred. This means a prospective Counselor Realty franchisee should budget for these expenses and be prepared to pay them as they arise during the training process.
The initial investment table in Item 7 of the FDD outlines various expenditures a new franchisee can expect. Training costs are just one component of the overall initial investment, which ranges from $22,850 to $105,700. The timing of payments varies depending on the type of expenditure. For example, the initial franchise fee is due when the Franchise Agreement is signed, while costs for fixtures and furnishings are due before opening.
Understanding when payments are due is crucial for managing cash flow during the initial setup phase. Since training costs can be paid to Counselor Realty or to outside vendors, franchisees need to clarify with Counselor Realty which training elements require direct payment to the company and which involve third-party vendors. This will help in anticipating and managing the timing of these expenses. It is also important to note that these figures are estimates and the actual costs may vary.