How does Christies International Real Estate define 'Gross Revenues' for royalty fee calculations?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
is Agreement.
- 21.4. "Content" means all text, images, sounds, files, videos, designs, animations, layouts, color schemes, trade dress, concepts, methods, techniques, processes and data used in connection with, displayed on, or collected from or through the Intranet or email system.
- 21.5. "Customer Data" means any name, address, email address, telephone number, date of birth, demographic data, behavioral data, customer service history, financial data, transaction data, correspondence, and other information about any potential, current, or former customer of the Business, whether stored in electronic, physical, or other forms or formats.
- 21.6. "Gross Revenues" means the aggregate dollar amount from all sales of goods or services made, provided by, or 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 Christies International Real Estate's 2025 Franchise Disclosure Document, Gross Revenues are defined as the total dollar amount from all sales of goods or services related to the Business or Marks. This includes cash, credit, and non-cash transactions at fair market value, before any deductions for fees, costs, or expenses incurred by the franchisee. Gross Revenues also encompass total commissions earned from each transaction before any deductions, including MLS fees.
For example, if a Christies International Real Estate office sells a home for $500,000 with a 6% commission and a 50/50 split between the seller's and buyer's agents, the gross commission would be $15,000. However, Gross Revenue excludes any commissions paid to or shared with an authorized and approved affiliated referral source, as permitted under Section 5.17 of the agreement.
This definition is important for prospective franchisees because it directly impacts the calculation of royalty fees and potentially the advertising fund fee. Understanding what constitutes Gross Revenues ensures accurate reporting and payment of these fees to Christies International Real Estate. Franchisees should pay close attention to the inclusions and exclusions in this definition to avoid any discrepancies or disputes with the franchisor.