What is an example of how Gross Revenues are calculated for a Christies International Real Estate franchise transaction?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
21. DEFINITIONS
- 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 from each transaction before any deductions, including without limitation, MLS fees.
By way of example, and not a limitation, in the event your office or one of your agents sells a home with a closing price of $500,000, a commission of 6%, a seller/buyer agent split of 50/50, this sale would generate a gross commission of $15,000.
The "Gross Revenues" for that transaction, upon which Royalty Fees and other fees will be calculated, will be $15,000.
Gross Revenue excludes the portion of the commissions earned from each transaction that is paid to or shared with an authorized and approved affiliated referral source, as permitted under Section 5.17.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate FDD, Gross Revenues are calculated as the aggregate dollar amount from all sales of goods or services connected with the Business or the Marks, whether for cash, credit, or non-cash payments, before any deductions for fees, costs, or expenses. Gross Revenues include the total commissions earned from each transaction before any deductions, including MLS fees.
For example, if a Christies International Real Estate office or one of its agents sells a home with a closing price of $500,000 and a commission of 6%, with a 50/50 split between the seller's and buyer's agents, the gross commission generated would be $15,000. This $15,000 figure is the Gross Revenue for that transaction, upon which Royalty Fees and other fees will be calculated.
However, Gross Revenue excludes any portion of commissions earned from each transaction that is paid to or shared with an authorized and approved affiliated referral source, as permitted under Section 5.17 of the agreement. This exclusion could reduce the amount subject to royalty and other fees, benefiting the franchisee in cases where referral sources are involved.