Christie's International Real Estate

Item 7 lays out the initial investment from $64,475 to $443,125, covering the $35,000 franchise fee, real estate, equipment, and working capital for a full-service residential brokerage targeting luxury homes. Ongoing fees include a negotiated royalty of 3-6% on gross commissions—no ad fund contributions yet, but $150 annual per-agent DMS fee adds up in a scaling office. Without Item 19, you're blind to average revenues or profits, forcing reliance on market comps; top luxury agents can clear seven figures, but brokerages absorb splits, marketing, and overhead in a commission-driven model.

System health shows contraction from 36 to 33 franchise locations (-8% growth), with 4 terminations and 3 non-renewals signaling early attrition despite 6 projected new units. Franchising since 2022 from Chicago HQ, this Compass-backed play bets on brand halo for high-end referrals, but modest footprint and no earnings disclosure amplify risks for the $443K high-end buy-in. For deep-pocketed operators in wealthy markets, the network access shines; elsewhere, it's a tough sell without proven unit economics.