When are late charges and interest due to Corcoran?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
| $5,000,001 | $10,000,000 | 0.75% | | $10,000,001 | * | 0.50% | | Name of Fee | Amount | Due Date | Remarks | |------------------------------|-------------|-------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Audit Fees | See remarks | upon receipt of the audit report | You must immediately pay us any fees that the audit reveals were due during the audit period but not paid, plus interest at Prime plus 2%. If you fail to cooperate on a timely basis with an audit, fail to keep auditable records, cancel or reschedule the audit, or if the audit exposes a deficiency of 5% or more in amounts due for any consecutive 3-month period, you also must pay all of our audit costs, plus fees past due, interest, late charges and costs. As of the issuance date of this disclosure document, the estimated cost for an audit is a minimum of $450 per day; however, we and our Related Parties have the right to increase the minimum per diem rate by up to 10% per year. For existing franchisees, the criteria that may require payment of audit fees may vary according to the terms of their Franchise Agreement. | | Late Charges and Interest | See remarks | Upon demand | All past due payments will bear interest at the highest legal rate (not to exceed 1.5% per month) plus the highest allowable legal late charge.
Source: Item 6 — OTHER FEES [1] [2] (FDD pages 27–34)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, late charges and interest on past due payments are due upon demand. The FDD specifies that all past due payments will accrue interest at the highest legal rate, but not exceeding 1.5% per month. Additionally, the highest allowable legal late charge will be applied to overdue amounts.
This means that if a Corcoran franchisee fails to make a payment on time, Corcoran can demand immediate payment of both the overdue amount and any accrued late charges and interest. The interest rate is capped at 1.5% per month, but the actual rate and late charge will depend on applicable laws.
Prospective franchisees should be aware of these terms and ensure they have sufficient capital and financial management practices in place to avoid late payments. Understanding the specific late charge regulations in their jurisdiction is also crucial to managing potential costs. Franchisees should consult with legal and financial advisors to fully understand their obligations and the potential financial impact of late payments.