Free Statement - District Court of Arizona - Arizona

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UNITED STATES DISTRICT COURT
DISTRICT OF ARIZONA
CASE NO. CIV 03 2353-PHX-DGC
CENTURY 21 REAL ESTATE CORPORATION,
DARYUSH B. MOTLAGH AND JANE DOE MOTLAGH, HUSBAND AND WIFE;
INTEGRITY ASSURANCE,
EXHIBIT TO CENTURY 21 REAL ESTATE CORPORATION’S: (1) RENEWED
MOTION FOR SUMMARY JUDGMENT ON ITS BREACH OF CONTRACT I
AND UNJUST ENRICHMENT CLAIMS; AND (2) MOTION FOR SUMMARY I
JUDGMENT ON COUNTERCLAIMS
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EXHIBIT 34 I
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Case 2:03-cv-02353-DGC Document 78-39 Filed O7/O7/2006 Page 1 of 3

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Real Estate Corporation .
1 Campus Drive
Parsippany New Jersey 07054 . §
Business (973) 428-9700 1
Fax (973) 496-5641 L _
i ?¤1L1"i 9715 U?].
y February 5, 2002 0 . ‘
a PERSONAL & CONFIDENTIAL .
1
Darytish B Motlagh
CENTURY 21 Assurance Realty -
14175 W. Indian School Road ( z
Goodyear, AZ 85338
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- Re: Notice of Termination of CENTURY 21 ® Real Estate Franchise Agreement (the i
_ "Agreement") #2210780001 ’
Dear Mr.l\/Iotlagh: _ I i
_ In September of 2001 we advised you that you were in default of the terms of the above-referenced 0
Agreement for operating below the minimum operating standards. We specifically noted our right
to terminate your Agreement in the event you failed to cure the default on or before December 31,
2001. I have been advised that you remain in default of your Agreement as you have not remedied
the violations referenced in said letter and, as a result thereotj your Agreement is hereby terminated -
effective Februagy 19, 2002. I
Termination is based upon the failure of Franchisee to perform its obligations under the Agreement
` as follows:
(Subparagraph 17.F). "In the event perfonnarrce of Franchisee falls below the minimum 1 i
- operating standards set forth in this Subparagraph F, Franchisee will be notified in writing ·
setting forth such deficiency and at the option of Franchisor, Franchisee may be placed on
probation for a period of not less than three (3) months nor more than six (6) months. lf
such deficiency i_s not corrected within said probationary period, Franchisor may, at its a
option, terminate this Agreement. The minimum operating standard requires that
_i Franchisee shall, in every six (6) month period, beginning with a starting point established
by Franchisor, maintain a volume of closed business on which service fees have been paid
- sufficient to produce revenue (for purposes of detemiining service fees) over suclrperiod 1
equal to not less than fifty percent (50%) of the average revenue (for purposes of ` (
determining service fees) generated by all tranchisees over such six (6) month period in the 1
same local council or in such geographic area as Franchisor may reasonably establish from 1
time to ti1ne.” (
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case 2:03-cv-02353-DGC ’l>8‘&’Etia"é‘rE°fa2t»'9" Filed 07/07/200s Cu"g9lE23?s N

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For the period from July 1, 2001 to December 31, 2001 your office revenues were $60,420.50. The
average revenue generated by all Franchisees in your local council was $468,694.96 during that .
same period. This makes your revenues 12.89% of the average, which fails to meet Century 21 ’s
minimum operating standards.
_ To date your account balances are as follows:
_ Unbilled Closedfllnpaid Transactions: ` $ 608.71 .
Audit Findings Billed to Date: ‘ _ $25,425.75 . A
. National Advertising Fund Contributions: $ 1,967.04
` Minimum Royalty Fees Billed to Date: $13,422.60
` Promissory Note: l _ $ 3,145.46 `
Finance Charge: . $ 3,697.45 i
l Non·Sufficient Fund Charge: $ gl,360.32[
TOTAL:. $46,906.69 A i _
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Please remit a check for the entire balance to the attention of Sue Skidmore, Vice President of
Operations upon receipt of this letter.
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We reserve our right under the Agreement to conduct a post termination audit of your records. As a l .
result of this audit, additional amounts may be due for National Advertising Fund (NH)
contributions and service fees, and in that event, an additional invoice will be forwarded.
For your ready reference, I have enclosed the procedures set forth in your Agreement which you are 9
A required to follow immediately after termination of the Franchise. We will be conducting a post ‘ i
termination site inspection in the next several weeks to determine if you have complied fully with
these obligations. Please be advised that failure to do so will be met with swift legal action by
Century 21- Thank you in advance for your immediate cooperation.
z.
Sincerely, l
Century 21 Real Estate Corporation Q
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UQLE" Cgw — 1
John Kornfeind . 1 . ‘ i
Senior Vice President of _ g
- Franchise Sales & Administration
V cc. Jake Stanton l
· . Dale Omer i
rom nar _
- Cheryl DePaolis . § -
Sue Skidmore n
i · Charlene Abbood - . n l
Legal File
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