What is the due date for the Step-In Management Fee owed to Christies International Real Estate?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee (Note 1) | Amount (Note 2) | Due Date | Remarks |
|---|---|---|---|
| Step-In Management Fee | Currently $500 per day plus costs and expenses | Upon demand | In the event of your death or incapacity, we are entitled to a per diem amount, currently $500 per day, plus reimbursement for any reasonable expenses we incur in managing your Business. |
Source: Item 6 — OTHER FEES (FDD pages 14–17)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, the Step-In Management Fee is due upon demand. This fee is incurred if Christies International Real Estate needs to step in and manage the franchisee's business due to the franchisee's death or incapacity. The fee is currently $500 per day, in addition to any costs and expenses that Christies International Real Estate incurs while managing the business.
This means that if a franchisee becomes incapacitated or dies, Christies International Real Estate will manage the business and charge $500 per day plus expenses for doing so. The franchisee's estate or the franchisee themselves would be responsible for paying this fee when Christies International Real Estate demands it. This is an important consideration for prospective franchisees, as it represents a potential cost in the event of unforeseen circumstances.
Franchisors often have provisions for managing a franchise in the event of a franchisee's death or disability, but the specific fees and terms can vary. It is important for prospective franchisees to understand these terms and factor them into their financial planning. The "upon demand" payment term means Christies International Real Estate has the discretion to determine when payment is required, so franchisees should be prepared to pay promptly to avoid any late payment penalties or other issues.