When are payments for start-up supplies and inventory due to Christies International Real Estate?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
If Christie's International Real Estate, LLC offers you a franchise, we must provide this disclosure document to you 14 calendar days before you sign a binding agreement with, or make a payment to, us or an affiliate in connection with the proposed franchise sale.
Iowa requires that we give you this Disclosure Document at the earlier of the first personal meeting or 14 calendar days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
Michigan requires that we give you this Disclosure Document at least 10 business days before the execution of any binding franchise or other agreement or the payment of any consideration, whichever occurs first.
New York requires that we give you this Disclosure Document at the earlier of the first personal meeting or 10 business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship.
Source: Item 5 — INITIAL FEES (FDD pages 13–14)
What This Means (2025 FDD)
According to the 2025 Christie's International Real Estate FDD, payment timing for start-up supplies and inventory is tied to the delivery of the Franchise Disclosure Document (FDD). Christie's International Real Estate must provide the FDD to a prospective franchisee at least 14 calendar days before they sign a binding agreement or make any payment to Christie's International Real Estate or its affiliates related to the franchise sale. This federal requirement ensures franchisees have adequate time to review the document before committing financially. Iowa also requires that Christie's International Real Estate give you the Disclosure Document at the earlier of the first personal meeting or 14 calendar days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale. Michigan requires that Christie's International Real Estate give you this Disclosure Document at least 10 business days before the execution of any binding franchise or other agreement or the payment of any consideration, whichever occurs first. New York requires that Christie's International Real Estate give you this Disclosure Document at the earlier of the first personal meeting or 10 business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship.
This 14-day (or 10 business day) period is a standard practice in franchising, designed to protect potential franchisees. The FDD contains critical information about the franchise system, including fees, obligations, and financial performance. By mandating this waiting period, franchise regulations aim to ensure that franchisees make informed decisions.
Therefore, while the FDD does not specify an exact due date for start-up supplies and inventory, it mandates that no payments can be collected until a minimum of 14 calendar days after the franchisee receives the FDD. A prospective Christie's International Real Estate franchisee should clarify the specific payment schedule for these items during their discussions with the franchisor, keeping in mind the legal requirement for the FDD review period.