Does the definition of 'Gross Revenues' for Christies International Real Estate include non-cash payments?
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 the 2025 Christies International Real Estate Franchise Disclosure Document, "Gross Revenues" includes non-cash payments. Specifically, Gross Revenues are defined as the total dollar amount from all sales of goods or services related to the Christies International Real Estate business, regardless of whether payment is received in cash, credit, or non-cash forms. The value of non-cash payments is determined by their fair market value. This calculation is made before any deductions for fees, costs, or expenses incurred by the franchisee.
This definition is important for prospective franchisees because it clarifies the base upon which royalties and other fees are calculated. Even if a transaction involves non-cash consideration, Christies International Real Estate will calculate its fees based on the fair market value of that consideration. This ensures that all transactions contribute to the royalty calculation, regardless of the payment method.
For example, the FDD provides an illustration: 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 is $15,000. This $15,000 figure is the "Gross Revenue" used to calculate Royalty Fees and other fees. However, Gross Revenue excludes any commissions paid to authorized and approved affiliated referral sources, as permitted under Section 5.17 of the agreement.