Where can the specific amount of the royalty fee for a Christies International Real Estate franchise be found?
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 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.
- 21.7. "Internet" means one or more related documents, designs, pages, or other communications or platforms that can be accessed through electronic means, including but not limited to the Internet, World Wide Web, social networking sites (including but not limited to Facebook, Twitter, LinkedIn, Instagram, YouTube, etc.), blogs, vlogs, and other applications, etc. For the avoidance of doubt, we reserve, maintain, and control all rights with respect to the metaverse.
- 21.8. "Marketing Director" means the person you employ that is responsible for collaborating with the CHRISTIE'S INTERNATIONAL REAL ESTATE marketing team, implementing local marketing initiatives, and enforcing branding guidelines on a local level. The Marketing Director does not need to be a Principal Owner.
- 21.9. "Marks" means the trademarks, service marks, and other trademarks, trade names, service marks, domain names, logos and commercial symbols that we have designated, or may in the future designate, for use in the System, which include CHRISTIE'S INTERNATIONAL REAL ESTATE.
- 21.10. "MLS Feed" means the local multiple listing service ("MLS") feed(s) obtained by you
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
I am unable to provide the specific royalty fee for a Christies International Real Estate franchise, as the excerpt from the 2025 Franchise Disclosure Document does not explicitly state the royalty fee amount or where it can be found. The document does mention that "Gross Revenues" for a transaction, upon which Royalty Fees and other fees will be calculated, will be $15,000. Also, the document mentions that if the franchisee continues to use the Marks and/or the System after the expiration of the agreement, they may be charged a Royalty Fee in the amount of the highest Royalty Fee paid to the franchisor in the last twenty-four (24) months of the Term for each month they operate after expiration.
However, the excerpt does refer to an "Advertising Fund Fee" which the franchisor reserves the right to implement, begin collecting, and increase at any time upon written notice, but this fee will not exceed three percent (3%) of Gross Revenue. If implemented, this Advertising Fund Fee would be paid in the same manner and at the same time as the Royalty Fee.
To determine the exact royalty fee, a prospective Christies International Real Estate franchisee should review the section of the FDD that outlines all fees, including initial franchise fees, ongoing royalty fees, and any other fees payable to the franchisor. It would also be beneficial to speak with current franchisees to understand their actual royalty fee obligations and how these fees impact their business operations.