What is the cure period for failing to pay Royalty Fees to Christies International Real Estate?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
with the transfer of funds described herein. If you change your bank account or transfer your account to a different bank, you must notify us within one day, and sign and deliver to us and the bank new documents to permit us to debit your bank account within three days. You will maintain a balance in your account sufficient to allow us to collect the amounts owed to us when due. You will be responsible for any penalties, fines or similar expenses associated with the transfer of funds described herein. We reserve the right to modify the payment methods and schedule in our Operations Manual from time to time at our option.
- 3.10. Delinquency. If any Royalty fees or other amounts owed to us are not paid in full by the due date, we may charge you a late payment fee of one hundred dollars ($100) for each failure to pay each fee on time, and interest on the overdue amount at the rate of one and one-half percent (1.5%) per month (or the maximum rate permitted by applicable law, if less than one and one-half percent (1.5%)) from the date such amount was due until paid in full. Unpaid interest charges will compound annually.
- 3.11. Application of Payments. We may apply any payments received from you against any indebtedness you owe to us.
- **3.12. Withhold
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, if Royalty fees or other amounts owed are not paid in full by the due date, Christies International Real Estate may charge a late payment fee of $100 for each late fee payment. Additionally, interest may be charged on the overdue amount at a rate of 1.5% per month (or the maximum rate permitted by applicable law, if less) from the date the amount was due until fully paid. Unpaid interest charges will compound annually.
This means that a Christies International Real Estate franchisee needs to be diligent in paying all fees on time to avoid incurring late payment fees and interest charges. The compounding of interest annually could significantly increase the amount owed over time if payments are not made promptly. The franchisee is also responsible for any penalties, fines, or similar expenses associated with the transfer of funds.
Christies International Real Estate also reserves the right to modify the payment methods and schedule in their Operations Manual, so franchisees must stay informed of any changes to avoid unintentional late payments. Furthermore, the agreement specifies that a franchisee cannot withhold Royalty Fee payments due to any alleged non-performance or breach by Christies International Real Estate, emphasizing the franchisee's obligation to maintain timely payments regardless of any disputes.