For Better Homes And Gardens Real Estate, what are 'Pending Transactions'?
Better_Homes_And_Gardens_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
For each Residential Real Estate and Commercial Real Estate transaction that occurs on or after the Effective Date of this Addendum, you must report the transaction and pay a Royalty Fee by ePay (or other method we designate) on the date of settlement (closing).
Royalty Fees are also due for all transactions and sales contracts entered into before the Expiration Date or the date this Agreement is terminated. 7.1.1.1 Sales Associate Cap.
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Better Homes And Gardens Real Estate requires franchisees to report and pay royalty fees for each Residential Real Estate and Commercial Real Estate transaction on the date of settlement (closing). This applies to transactions occurring on or after the effective date of the Term Extension Addendum.
Notably, Better Homes And Gardens Real Estate also mandates that royalty fees are due for all transactions and sales contracts entered into before the Expiration Date or the date the Franchise Agreement is terminated. This means that even after the franchise agreement ends, franchisees are still obligated to pay royalty fees on deals that were in progress during the term of the agreement.
In summary, 'Pending Transactions' refer to the sales contracts that have been agreed upon but not yet finalized by the closing date. Better Homes And Gardens Real Estate ensures it receives its royalty fees from these transactions, even if the closing occurs after the franchise agreement has ended.