What constitutes receipt of payment for Engel & Volkers invoices?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Invoices shall be paid by the Purchaser within ten (10) days of delivery without any deductions. The day on which the Vendor has access to the invoice total free of expense shall count as the day of receipt of payment. Checks and bills of exchange shall not be considered as a cash payment and shall always be taken on deposit only on account of payment. We reserve the right to require that certain items be paid for by the Purchaser with a credit card.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the day that Engel & Volkers has access to the invoice total, free of expense, is considered the day of receipt of payment. This means the funds must be fully available to Engel & Volkers without any deductions or costs incurred by them.
Checks and bills of exchange are not considered cash payments but are taken only on deposit for payment. Engel & Volkers also reserves the right to require payment via credit card for certain items.
This is important for prospective franchisees to understand, as late payments can result in arrears and interest charges. Engel & Volkers is entitled to charge interest at a rate of 5% above the prevailing base lending rate in Germany if payment is not received on time. Franchisees should ensure they have a system in place to make timely payments to avoid these penalties.