When is interest due on past due amounts for an Engel & Volkers franchise?
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 |
Source: Item 6 — OTHER FEES (FDD pages 22–30)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, interest on past due amounts is due on demand. The interest is 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 they have been timely reported. The interest rate charged will be 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 make a payment on time, they will be charged interest on the outstanding balance. The interest will accrue from the first day of the month in which the payment was due. The specific interest rate will depend on applicable law and the prime rate at the time. Franchisees should be aware of these terms to avoid incurring additional costs due to late payments.