For Engel & Volkers, within how many days of delivery must invoices be paid by the Purchaser?
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.
- (2) If the Purchaser exceeds the payment date provided for above in paragraph (1), then Purchaser shall be in arrears at this time at the latest. We are entitled to charge interest at a rate of five percent (5%) points above the prevailing base lending rate in Germany as of the delay in performance. The Purchaser is entitled to prove to us that no loss or an extremely small loss is incurred by us as a result of the delay in payment. Liability in accordance with this provision shall be ruled out insofar as the Purchaser can prove to us that he was not responsible for the delay. Should we be in a position to prove a higher loss as a result of the delay, then we shall be entitled to claim for this.
- (3) In the event of culpable delay, any purchase price installments, which are still outstanding, shall fall due immediately. Insofar as the Purchaser has suffered a deterioration in assets, in particular in the event of a suspension of payments or an application being made to open court composition or bankruptcy proceedings, we shall have the option of retention or withdraw from the contract with immediate effect. In the last instance, we shall have the right to demand the immediate release of the goods, which have been delivered, from the Purchaser and to collect these from the latter or arrange for these to be collected by an agent.
- (4) The Purchaser shall bear the rights of offsetting and retention only if its counter-claims have been determined by law, are undisputed or recognized by us. The Purchaser shall be entitled to exercise a right of retention only if its counter-claim is based on the same contractual relationship.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, invoices must be paid by the Purchaser within ten days of delivery without any deductions. The day the Vendor can access the full invoice amount without incurring expenses is considered the payment receipt date. Engel & Volkers does not consider checks and bills of exchange as cash payments; these are only accepted on deposit for payment. Engel & Volkers retains the right to require credit card payments for certain items.
If the Purchaser fails to meet the payment deadline, they will be considered in arrears. In such cases, Engel & Volkers is entitled to charge interest at a rate of five percent above the prevailing base lending rate in Germany, calculated from the date of the payment delay. However, the Purchaser can demonstrate that the delay caused minimal or no loss to Engel & Volkers to avoid this interest charge. Engel & Volkers can claim for higher losses if they can prove the delay caused a greater financial impact.
In the event of a culpable delay, any outstanding purchase price installments become immediately due. If the Purchaser's assets deteriorate, particularly if payments are suspended or bankruptcy proceedings are initiated, Engel & Volkers has the option to retain goods or withdraw from the contract immediately. In the latter case, Engel & Volkers can demand the immediate return of delivered goods from the Purchaser and arrange for their collection. The Purchaser can only offset or retain payments if their counter-claims are legally determined, undisputed, or recognized by Engel & Volkers, and the right of retention is applicable only if the counter-claim arises from the same contractual relationship.