When is the Transfer Fee due 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 |
|---|---|---|---|
| Transfer Fee | $5,000 | Before you complete the transfer | Subject to state law, you pay the transfer fee when the License Agreement, the Business, or a material interest in you is transferred. You do not pay the transfer fee if the transferee is an entity controlled by you. |
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 Transfer Fee is due before you complete the transfer. The standard transfer fee is $5,000. This fee is applicable when the License Agreement, the Business itself, or a material interest in the franchisee is transferred to a new party. However, the FDD specifies that the transfer fee is not required if the transfer is to an entity controlled by the franchisee, subject to state law.
This means that if a Christies International Real Estate franchisee decides to sell their franchise to someone else, they will need to pay the $5,000 transfer fee before the transaction is finalized. This fee likely covers Christies International Real Estate's administrative costs associated with approving the transfer and updating their records. It is important for prospective franchisees to factor this fee into their financial planning if they anticipate selling their franchise in the future.
The FDD also clarifies that the Transfer Fee is subject to state law, meaning that specific state regulations could potentially impact the applicability or amount of the fee. Franchisees should consult with a legal professional to ensure compliance with all relevant state laws regarding franchise transfers. This is a fairly standard practice in franchising, as transfer fees are common to compensate the franchisor for their time and effort in approving a new franchisee.
It is important to note the exception where the transfer is to an entity controlled by the franchisee. This provides some flexibility for franchisees who may want to restructure their business for tax or liability purposes without incurring the transfer fee, as long as they maintain control over the entity. Franchisees should carefully document any such transfers to ensure they meet the criteria for the exception and avoid any disputes with Christies International Real Estate.