On what is the Christies International Real Estate royalty fee based?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
r 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, the royalty fees are calculated based on "Gross Revenues" from each transaction. The document specifies that for royalty fee calculation purposes, "Gross Revenues" will be $15,000.
It is important to note that the definition of Gross Revenue excludes any commissions earned from each transaction 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 could impact the total revenue subject to royalty fees, potentially lowering the overall amount a franchisee owes.
Prospective franchisees should carefully review Section 5.17 and understand the criteria for authorized and approved affiliated referral sources to accurately forecast their royalty fee obligations. Understanding what constitutes Gross Revenue and what is excluded is crucial for financial planning and ensuring compliance with the franchise agreement.