How is Christies International Real Estate's taxable income or loss allocated?

According to the 2025 Franchise Disclosure Document, Christie's International Real Estate Management, LLC, as a limited liability company, allocates its taxable income or loss to its partners. This allocation is determined by the operating agreement in place. Consequently, the financial statements do not include any provision for income taxes.

For a prospective Christies International Real Estate franchisee, this means that the company itself does not pay income taxes directly. Instead, the individual partners are responsible for reporting and paying taxes on their allocated share of the company's income or loss. The specifics of how this allocation works would be detailed in the operating agreement, which franchisees should carefully review.

This structure is common for limited liability companies and partnerships, where the tax burden is passed through to the owners or partners. Franchisees should consult with a tax advisor to understand the implications of this structure for their own tax situation and how the operating agreement governs the allocation of income and losses.