How is the Royalty Fee for a Christies International Real Estate franchise paid?
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%. |
Before you may commence operations of the Business, you must sign and deliver to us all bank documents needed to permit us to debit your bank account via ACH Electronic Transfer for all fees and payments due to us or our affiliates. If you change your bank account or transfer your account to a different bank, you must notify us within one day, and sign and deliver to us and the bank new documents to permit us to debit your bank account within three days. We require you to execute an Automatic Bank Draft Authorization and pay most fees to us via ACH electronic funds transfer. See Exhibit 2 to the License Agreement.
-
- 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, ranging from 3% to 6% of Gross Revenues, is paid monthly via Electronic Funds Transfer (EFT). The specific percentage a franchisee pays is determined through negotiation with Christies International Real Estate, based on factors such as whether the Protected Territory is exclusive.
To facilitate these payments, prospective franchisees must sign and deliver all necessary bank documents to authorize Christies International Real Estate to debit their bank account via ACH Electronic Transfer for all fees and payments. This must be done before commencing business operations. Should a franchisee change their bank account or transfer it to a different bank, they are obligated to notify Christies International Real Estate within one day and provide new bank documents within three days to maintain the ACH electronic funds transfer arrangement.
The FDD defines "Gross Revenues" as the aggregate dollar amount from all sales of goods or services made in connection with the Business or the Marks, whether for cash or credit or non-cash payments, before any deductions of fees, costs, or expenses. Gross Revenues includes the total commissions earned from each transaction before any deductions, including MLS fees. For example, if an office sells a home with a closing price of $500,000, a commission of 6%, and 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.
It is important to note that failure to pay fees on time may result in a late payment fee of $100 for each instance, along with interest on the overdue amount at a rate of 1.5% per month (or the maximum rate permitted by applicable law).