What is the basis for calculating the royalty fees owed to Christies International Real Estate?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
r in connection with the Business or the Marks, whether for cash or credit or non-cash payments or consideration at fair market value, regardless of collection in the case of credit, before the deductions of any fees, costs, or expenses you incur. Gross Revenue includes, without limitation, the total commissions earned
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate FDD, royalty fees and other fees are calculated based on "Gross Revenues" for a transaction, which is defined as $15,000. However, the FDD specifies that Gross Revenue excludes any commissions earned from each transaction that are paid to or shared with an authorized and approved affiliated referral source, as permitted under Section 5.17 of the agreement.
For a prospective Christies International Real Estate franchisee, this means that the royalty fees they pay will be a percentage of their gross revenues, but they won't have to pay royalties on the portion of commissions they share with approved referral sources. This could incentivize franchisees to work with referral sources to generate more business, as they only pay royalties on the net amount they retain.
It's important for franchisees to understand the definition of "Gross Revenues" and what is included or excluded, as this directly impacts the amount of royalty fees owed to Christies International Real Estate. Franchisees should also familiarize themselves with Section 5.17 to understand the rules and requirements for working with affiliated referral sources and ensuring that commissions shared with them are properly excluded from gross revenues for royalty calculation purposes.