Does the definition of 'Gross Revenues' for Christies International Real Estate include sales of goods?
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 include the aggregate dollar amount from all sales of goods or services made, provided by, or in connection with the Business or the Marks. This definition includes sales made for cash, credit, or non-cash payments, before any deductions of fees, costs, or expenses.
For a Christies International Real Estate franchisee, this means that any revenue generated from the sales of goods, in addition to services, directly contributes to the Gross Revenues used to calculate royalty fees and other fees. The FDD provides an example where a home sale with a closing price of $500,000 and a 6% commission results in a gross commission of $15,000, which is considered Gross Revenue.
However, the definition of Gross Revenue does exclude any portion of commissions earned that are paid to or shared with an authorized and approved affiliated referral source, as permitted under Section 5.17 of the agreement. This exclusion can impact the total Gross Revenues on which fees are calculated, potentially lowering the franchisee's financial obligations to Christies International Real Estate.