From what date is interest payable on fees not timely reported to Engel & Volkers?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Interest (See Note 1) | The highest rate permitted by applicable law, or if there is no such rate 4% above the prime rate of interest identified by Citibank, N.A. in New York City | On demand. | Payable on all amounts in arrears from the first day of each month that an amount is past due. For any fees that were not timely reported interest will be payable from the first day of each month that an amount is past due, should |
| Type of Fee | Amount | Due Date | Remarks |
| ------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| they have been timely |
Source: Item 6 — OTHER FEES (FDD pages 22–30)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, interest is payable on fees not timely reported. Specifically, interest accrues from the first day of each month that the amount is past due, assuming the fees had been reported on time. The interest rate is the highest rate permitted by applicable law, or if there is no such rate, 4% above the prime rate of interest identified by Citibank, N.A. in New York City.
This means that if an Engel & Volkers franchisee fails to report fees on time, they will be charged interest from the beginning of the month in which the payment was missed. This applies to any fees that were not reported in a timely manner.
For a prospective franchisee, this highlights the importance of accurate and timely reporting of all fees to Engel & Volkers. Failure to do so can result in interest charges, adding to the overall cost of operating the franchise. Franchisees should ensure they have systems in place to track and report all revenues and fees accurately to avoid these penalties.