To what extent are transfer fees collectable for Christies International Real Estate?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
- **5.15.
Conversion Warranty.** If you are converting an existing brokerage, you will not be required to pay to us Royalty Fees on real estate transactions that are under contract at the time of the Effective Date but close after the Effective Date of this Agreement.
However, you acknowledge and agree to pay to us Royalty Fees on real estate transactions that are under contract during the term of this Agreement but close after expiration, termination, or transfer of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Christies International Real Estate specifies under which conditions royalty fees are to be paid regarding real estate transactions. If a franchisee is converting an existing brokerage to Christies International Real Estate, they will not be required to pay royalty fees on real estate transactions that were already under contract at the time the franchise agreement became effective, but which close after that effective date.
However, Christies International Real Estate franchisees are required to pay royalty fees on real estate transactions that are under contract during the term of the Franchise Agreement, but which close after the expiration, termination, or transfer of the agreement. This means that even if a franchisee's relationship with Christies International Real Estate ends, they are still obligated to pay royalty fees on deals they secured during the franchise term that close afterward.
This policy ensures that Christies International Real Estate continues to receive compensation for business generated under its brand, even after a franchisee leaves the system. Prospective franchisees should be aware of this obligation, as it could impact their financial planning in the event of a transfer or termination of their franchise agreement.