What is the range of the Royalty Fee for a Christies International Real Estate franchise?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee (Note 1) | Amount (Note 2) | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 3% to 6% of Gross Revenues, depending on whether your Protected Territory is exclusive and other factors | Monthly | Paid via Electronic Funds Transfer (EFT). You and we will negotiate your Royalty Fee, which will vary based on whether your Protected Territory is exclusive and other factors. It will range between 3% and 6%. |
| Advertising Fund Fee | Currently not collected | If collected, monthly with the Royalty Fee | We do not currently have an Advertising Fund. If implemented, the Advertising Fund Fee will not exceed 3% of Gross Revenues. |
Notes:
-
- Amount. "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 Revenues 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 Royalties 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.
Source: Item 6 — OTHER FEES (FDD pages 14–17)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, the Royalty Fee ranges from 3% to 6% of Gross Revenues. This fee is paid monthly via Electronic Funds Transfer (EFT). The specific percentage a franchisee pays depends on factors such as whether their Protected Territory is exclusive. The Royalty Fee is determined through negotiation between the franchisee and Christies International Real Estate.
Gross Revenues, as defined in the FDD, include the aggregate dollar amount from all sales of goods or services connected with the business or the brand, whether paid in cash, credit, or non-cash consideration. This includes total commissions earned before any deductions, such as MLS fees. For example, if an agent sells a home with a closing price of $500,000 and earns a 6% commission split 50/50 between the seller and buyer agents, the gross commission would be $15,000, which is the basis for calculating royalties and other fees. Gross Revenue excludes any commissions paid to authorized affiliated referral sources.
Prospective franchisees should understand that this Royalty Fee is a recurring monthly expense that will impact their profitability. The fact that the fee percentage is negotiable provides an opportunity for franchisees to potentially lower their costs, depending on the exclusivity of their territory and other factors. Franchisees must sign bank documents to allow Christies International Real Estate to debit their account for all fees due, and they must notify Christies International Real Estate of any changes to their bank account within one day.