Under what condition are transfer fees collectable for a Christies International Real Estate franchise?

According to the 2025 Christies International Real Estate Franchise Disclosure Document, if a franchisee is converting an existing brokerage, they will not be required to pay royalty fees on real estate transactions that are under contract at the time of the agreement's effective date but close after the effective date. However, the franchisee acknowledges and agrees to pay royalty fees on real estate transactions that are under contract during the term of the agreement but close after the expiration, termination, or transfer of the agreement. This means that Christies International Real Estate collects royalty fees on transactions under contract during the agreement's term if they close after the agreement ends, including after a transfer.

This policy is important for prospective franchisees to understand, especially if they plan to sell or transfer their franchise in the future. It ensures that Christies International Real Estate receives its share of revenue from deals that were initiated during the franchise agreement's active period, even if the actual closing occurs after the agreement is no longer in effect. This is a fairly standard practice in franchising, as it protects the franchisor's revenue stream and ensures they are compensated for the value they provided during the term of the agreement.

Franchisees should carefully consider this clause when evaluating the financial implications of transferring their franchise. They should factor in any pending transactions that might close after the transfer date, as these will be subject to royalty fees payable to Christies International Real Estate. Understanding this policy can help franchisees make informed decisions about the timing of a potential transfer and its overall financial impact.