When is the Step-In Management Fee due 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 in the event of the franchisee's death or incapacity, where Christies International Real Estate steps in to manage the business. The fee covers $500 per day, plus reimbursement for any reasonable expenses incurred by Christies International Real Estate while managing the business.
This means that if a Christies International Real Estate franchisee becomes unable to manage their business due to death or incapacity, Christies International Real Estate will take over the management and charge a daily fee of $500 in addition to covering any related expenses. The 'upon demand' payment term means Christies International Real Estate can request immediate payment for these services and expenses.
For a prospective franchisee, this highlights the importance of having a solid succession plan or business continuity plan in place. While the Step-In Management Fee provides a safety net in unforeseen circumstances, it's crucial to understand the financial implications and ensure that the business can cover these costs if the need arises. Franchisees should also clarify what constitutes 'reasonable expenses' to avoid potential disputes.
It is important to note that the Step-In Management Fee is not a common fee in the franchise industry. Franchise agreements typically outline procedures for business transfer or termination in the event of death or incapacity, but direct management by the franchisor with a daily fee is less common. Prospective franchisees should carefully consider this aspect of the Christies International Real Estate franchise agreement and seek legal counsel if needed.