Christies_International_Real_Estate 2025 Franchise FAQ - FDD Ninja

Question 1

What is the estimated total initial investment range for a Christies International Real Estate franchise?

Accepted Answer

INVESTMENT

| Type of Expenditure (Note 1)                    | Estimated Amount    | Method of Payment | When Due                               | To Whom Payment is to be Made |
|-------------------------------------------------|---------------------|----------------------|----------------------------------------|-------------------------------------|
| Initial Fee | \$35,000 | Lump sum | When you sign the License | Us |
| (Note 2) |  |  | Agreement |  |
| Initial Training Expenses (Note 3)              | \$1,000 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Leasehold Improvements | \$0 to \$150,000 | As agreed upon | As agreed upon | Third-party vendors |
| (Note 4) |  |  |  |  |
| Rent and Security Deposit | \$3,000 to \$10,000 | As agreed upon | As agreed upon | Landlord |
| (Note 5) |  |  |  |  |
| "For Sale" Signage | \$1,000 to \$25,000 | As incurred | Before opening | Third-party vendors |
| (Note 6) |  |  |  |  |
| Office Signage | \$250 to \$5,000 | As incurred | Before opening | Third-party vendors |
| (Note 7) |  |  |  |  |
| Equipment and Furniture (Note 8)                | \$7,500 to \$50,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Computers and Software (Note 9)                 | \$2,500 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Start-up Supplies and | \$5,000 to \$10,000 | As incurred | As incurred | Third-party vendors and Us |
| Inventory |  |  |  |  |
| (Note 10) |  |  |  |  |
| Insurance (Note 11)                             | \$1,500 to \$25,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Professional Fees | \$1,500 to \$5,000 | As incurred | As incurred | Accountants, |
| (Note 12) |  |  |  | Attorneys |
| Type of Expenditure (Note 1)          | Estimated Amount      | Method of Payment | When Due    | To Whom Payment is to be Made |
|---------------------------------------|-----------------------|----------------------|-------------|-------------------------------------|
| Utilities | \$350 to \$2,500 | As incurred | As incurred | Third-party vendors |
| (Note 13) |  |  |  |  |
| Licensing Costs | \$500 to \$2,500 | As incurred | As incurred | State agencies |
| (Note 14) |  |  |  |  |
| Data Feed Transmission | \$250 to \$3,000 | As incurred | As incurred | Third-party vendors |
| (Note 15) |  |  |  |  |
| Additional Funds – 3 Months (Note 16) | \$5,000 to \$90,000   | As incurred          | As incurred | Third-party vendors                 |
| MLS Fee (Note 17)                     | \$0 to \$10,000       | As incurred          | As incurred | Us                                  |
| DMS Fee (Note 18)                     | \$125                 | As incurred          | Annually    | Us                                  |
| TOTAL (Note 19)                       | \$64,475 to \$443

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–20)

Question 2

Where is the location for all of the listed training programs provided by Christies International Real Estate?

Accepted Answer

We intend to hold initial training classes quarterly, or more often if necessary, at our headquarters in Chicago, Illinois, another location that we designate, or virtually over the internet.

The following Instructors teach our initial training program: Michael Golden, Thaddeus Wong, Joni Meyerowitz, and Amy Corr. Guest Instructors may also make select presentations. Item 2 sets forth the nature of the instructor's experience for Michael Golden and Thaddeus Wong. Our other instructors of the initial training program include the following:

*Amy Corr, EVP of Culture & Agent Development*. Ms. Corr has served as the EVP of Culture & Agent Development for At World Holdings Properties, LLC in Chicago, Illinois since May 2019. From January 2013 to September 2017, Ms. Corr served as a Managing Broker for At World Holdings Properties, LLC in Illinois.

*Joni Meyerowitz, Chief Operating Officer*. Ms. Meyerowitz has served as the Chief Operating Officer of At World Franchising, LLC since July 2020. Ms. Meyerowitz also serves as the Chief Operating Officer to At World Properties, LLC in Chicago, Illinois, and she has held this role since November 2010.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–33)

Question 3

Does Christies International Real Estate provide any on-the-job training for any of the listed training programs?

Accepted Answer

| Subject | Hours of Classroom | Hours of On the | Location* |  |
|--------------------------------------------------------|--------------------------------|---------------------------------|----------------|--|
|  | Training | Job Training |  |  |
| Team Introduction, Roles, and Support | .5 | - | Chicago, IL |  |
| Opening and Converting your Main Office | 1 | - | Chicago, IL |  |
| Marketing and Advertising Strategies | 1 | - | Chicago, IL |  |
| TRAINING PROGRAM |  |  |  |  |
| Subject | Hours of Classroom Training | Hours of On the Job Training | Location* |  |
| Social Media and Public Relations | .5 | - | Chicago, IL |  |
| Brand and Branding Guidelines | 1 | - | Chicago, IL |  |
| Proprietary | 4 | - | Chicago, |  |
| Software |  |  | IL |  |
| Recruitment and Retention of Agents | 1 | - | Chicago, IL |  |
| Training, Mentorship, and Onboarding | 1 | - | Chicago, IL |  |
| Building and Maintaining Culture | .5 | - | Chicago, IL |  |
| Training and Coaching Program | .5 | - | Chicago, IL |  |
| Opening the Main Office | .5 | - | Chicago, IL |  |
| Relocation | .5 | - | Chicago, IL |  |
| Financial and Reporting Processes | .5 | - | Chicago, IL |  |
| Working with the CHRISTIE'S | .5 | - | Chicago, IL |  |
| INTERNATIONAL REAL ESTATE Team - |  |  |  |  |
| Expectations |  |  |  |  |
| and |  |  |  |  |
| Roles |  |  |  |  |
| Total | 13 hours | 0 hours |  |  |

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–33)

Question 4

What is the total number of classroom training hours provided by Christies International Real Estate?

Accepted Answer

| Subject | Hours of Classroom | Hours of On the | Location* |  |
|--------------------------------------------------------|--------------------------------|---------------------------------|----------------|--|
|  | Training | Job Training |  |  |
| Team Introduction, Roles, and Support | .5 | - | Chicago, IL |  |
| Opening and Converting your Main Office | 1 | - | Chicago, IL |  |
| Marketing and Advertising Strategies | 1 | - | Chicago, IL |  |
| TRAINING PROGRAM |  |  |  |  |
| Subject | Hours of Classroom Training | Hours of On the Job Training | Location* |  |
| Social Media and Public Relations | .5 | - | Chicago, IL |  |
| Brand and Branding Guidelines | 1 | - | Chicago, IL |  |
| Proprietary | 4 | - | Chicago, |  |
| Software |  |  | IL |  |
| Recruitment and Retention of Agents | 1 | - | Chicago, IL |  |
| Training, Mentorship, and Onboarding | 1 | - | Chicago, IL |  |
| Building and Maintaining Culture | .5 | - | Chicago, IL |  |
| Training and Coaching Program | .5 | - | Chicago, IL |  |
| Opening the Main Office | .5 | - | Chicago, IL |  |
| Relocation | .5 | - | Chicago, IL |  |
| Financial and Reporting Processes | .5 | - | Chicago, IL |  |
| Working with the CHRISTIE'S | .5 | - | Chicago, IL |  |
| INTERNATIONAL REAL ESTATE Team - |  |  |  |  |
| Expectations |  |  |  |  |
| and |  |  |  |  |
| Roles |  |  |  |  |
| Total | 13 hours | 0 hours |  |  |

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–33)

Question 5

What is the total number of Christies International Real Estate franchise agreements signed but outlets not yet opened across all listed states?

Accepted Answer

| Column 1       | Column 2                                                | Column 3                                                       | Column 4                                                             |
|----------------|---------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------------|
| State | Franchise Agreements | Projected New Franchised | Projected New Company |
|  | Signed But Outlet Not | Outlets in the Next Fiscal | Owned Outlets in the |
|  | Opened | Year | Current Fiscal Year |
| California     | 0                                                       | 1                                                              | 0                                                                    |
| Florida        | 0                                                       | 1                                                              | 0                                                                    |
| Idaho          | 0                                                       | 1                                                              | 0                                                                    |
| Nevada         | 0                                                       | 1                                                              | 0                                                                    |
| North Carolina | 0                                                       | 0                                                              | 0                                                                    |
| South Carolina | 0                                                       | 1                                                              | 0                                                                    |
| Texas          | 0                                                       | 1                                                              | 0                                                                    |
| TOTAL          | 0                                                       | 6                                                              | 0                                                                    |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 47–53)

Question 6

What is the total number of on-the-job training hours provided by Christies International Real Estate?

Accepted Answer

| Subject | Hours of Classroom | Hours of On the | Location* |  |
|--------------------------------------------------------|--------------------------------|---------------------------------|----------------|--|
|  | Training | Job Training |  |  |
| Team Introduction, Roles, and Support | .5 | - | Chicago, IL |  |
| Opening and Converting your Main Office | 1 | - | Chicago, IL |  |
| Marketing and Advertising Strategies | 1 | - | Chicago, IL |  |
| TRAINING PROGRAM |  |  |  |  |
| Subject | Hours of Classroom Training | Hours of On the Job Training | Location* |  |
| Social Media and Public Relations | .5 | - | Chicago, IL |  |
| Brand and Branding Guidelines | 1 | - | Chicago, IL |  |
| Proprietary | 4 | - | Chicago, |  |
| Software |  |  | IL |  |
| Recruitment and Retention of Agents | 1 | - | Chicago, IL |  |
| Training, Mentorship, and Onboarding | 1 | - | Chicago, IL |  |
| Building and Maintaining Culture | .5 | - | Chicago, IL |  |
| Training and Coaching Program | .5 | - | Chicago, IL |  |
| Opening the Main Office | .5 | - | Chicago, IL |  |
| Relocation | .5 | - | Chicago, IL |  |
| Financial and Reporting Processes | .5 | - | Chicago, IL |  |
| Working with the CHRISTIE'S | .5 | - | Chicago, IL |  |
| INTERNATIONAL REAL ESTATE Team - |  |  |  |  |
| Expectations |  |  |  |  |
| and |  |  |  |  |
| Roles |  |  |  |  |
| Total | 13 hours | 0 hours |  |  |

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–33)

Question 7

What is the total projected number of new franchised Christies International Real Estate outlets expected in the next fiscal year across all listed states?

Accepted Answer

| Column 1       | Column 2                                                | Column 3                                                       | Column 4                                                             |
|----------------|---------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------------|
| State | Franchise Agreements | Projected New Franchised | Projected New Company |
|  | Signed But Outlet Not | Outlets in the Next Fiscal | Owned Outlets in the |
|  | Opened | Year | Current Fiscal Year |
| California     | 0                                                       | 1                                                              | 0                                                                    |
| Florida        | 0                                                       | 1                                                              | 0                                                                    |
| Idaho          | 0                                                       | 1                                                              | 0                                                                    |
| Nevada         | 0                                                       | 1                                                              | 0                                                                    |
| North Carolina | 0                                                       | 0                                                              | 0                                                                    |
| South Carolina | 0                                                       | 1                                                              | 0                                                                    |
| Texas          | 0                                                       | 1                                                              | 0                                                                    |
| TOTAL          | 0                                                       | 6                                                              | 0                                                                    |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 47–53)

Question 8

Is the business operated by At Properties Developer Services, LLC, an affiliate of Christies International Real Estate, the same type of business described in the Christies International Real Estate Disclosure Document?

Accepted Answer

Our affiliate, At Properties Developer Services, LLC ("At Development") is a Georgia limited liability company formed on January 10, 2017, with its principal business address at 3017 Bolling Way NE, Atlanta, GA. At Development Operates a real estate development services business and may provide Affiliates with consulting and marketing services in their Businesses in the future. It has never offered franchises in this or any other line of business, and it does not operate the same type of business that is described under this Disclosure Document.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–11)

Question 9

Does the definition of 'Principal Owner' for Christies International Real Estate differ based on the type of entity owning the franchise?

Accepted Answer

Information must sign a confidentiality agreement in a form we approve (currently Exhibit 5 to the License Agreement and in the Operations Manual).

A "Principal Owner" is any person or entity who, directly or indirectly, owns a 5% or greater interest in the Affiliate. If any corporation or other entity other than a partnership is a Principal Owner, a "Principal Owner" also will mean a shareholder or owner of a 5% or greater interest in such corporation or other entity.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 41–43)

Question 10

What is the due date for the initial fee for a Christies International Real Estate franchise as stated in Item 5, and how does this relate to the timeline for pre-opening obligations in Item 11?

Accepted Answer

- **19.

Item 5, Additional Disclosure.** Payment of the initial fee is deferred until such time as the franchisor completes its initial obligations and Affiliate is open for business.

Question 11

What are all the fees a Christies International Real Estate franchisee might pay, combining the initial fee in Item 5 and the other fees listed in Item 6?

Accepted Answer

For a traditional franchise agreement, the initial franchise fee ranges from $25,000 to $50,000. For an addendum agreement, the initial franchise fee is $15,000. For a referral agreement, the initial franchise fee is $5,000.

The royalty fee is 6% of gross revenue.

We may implement, begin collecting, and increase the Advertising Fund Fee at any time upon written notice to you; however, the Advertising Fund Fee will not exceed three percent (3%) of Gross Revenue.

We do not charge for the Trainees to attend initial training, but you are responsible for travel, lodging, transportation, meal costs, and your employees' wages to attend initial training.

We reserve the right to require any additional personnel to addend our initial training program, at our then-current additional training fee (which is currently $500 per day per attendee).

Additional Training or Seminars. You must pay for any fees we charge per our then current schedule of charges, which can vary over time (which is currently $500 per day per attendee).

You must attend any annual conference or conference that we sponsor or designate. You must pay to us our then-current Annual Conference Fee and you are responsible for all travel and living expenses. If you fail to attend the annual conference without our prior written consent, you must pay our then-current fee for two people for failing to attend the conference.

We charge a fee in the range of $5,000 to $10,000 to add additional MLS feeds not added during the initial proprietary software setup.

Question 12

How does the initial fee for Christies International Real Estate in Item 5 compare to other fees potentially due as described in Item 6?

Accepted Answer

#### Notes:

- 2. **Initial Fee.** The initial fee is $35,000 and is payable in accordance with Item 5.

Question 13

What is the relationship between the initial fee for a Christies International Real Estate franchise in Item 5 and the estimated initial investment in Item 7?

Accepted Answer

INVESTMENT

| Type of Expenditure (Note 1)                    | Estimated Amount    | Method of Payment | When Due                               | To Whom Payment is to be Made |
|-------------------------------------------------|---------------------|----------------------|----------------------------------------|-------------------------------------|
| Initial Fee | \$35,000 | Lump sum | When you sign the License | Us |
| (Note 2) |  |  | Agreement |  |
| Initial Training Expenses (Note 3)              | \$1,000 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Leasehold Improvements | \$0 to \$150,000 | As agreed upon | As agreed upon | Third-party vendors |
| (Note 4) |  |  |  |  |
| Rent and Security Deposit | \$3,000 to \$10,000 | As agreed upon | As agreed upon | Landlord |
| (Note 5) |  |  |  |  |
| "For Sale" Signage | \$1,000 to \$25,000 | As incurred | Before opening | Third-party vendors |
| (Note 6) |  |  |  |  |
| Office Signage | \$250 to \$5,000 | As incurred | Before opening | Third-party vendors |
| (Note 7) |  |  |  |  |
| Equipment and Furniture (Note 8)                | \$7,500 to \$50,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Computers and Software (Note 9)                 | \$2,500 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Start-up Supplies and | \$5,000 to \$10,000 | As incurred | As incurred | Third-party vendors and Us |
| Inventory |  |  |  |  |
| (Note 10) |  |  |  |  |
| Insurance (Note 11)                             | \$1,500 to \$25,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Professional Fees | \$1,500 to \$5,000 | As incurred | As incurred | Accountants, |
| (Note 12) |  |  |  | Attorneys |
| Type of Expenditure (Note 1)          | Estimated Amount      | Method of Payment | When Due    | To Whom Payment is to be Made |
|---------------------------------------|-----------------------|----------------------|-------------|-------------------------------------|
| Utilities | \$350 to \$2,500 | As incurred | As incurred | Third-party vendors |
| (Note 13) |  |  |  |  |
| Licensing Costs | \$500 to \$2,500 | As incurred | As incurred | State agencies |
| (Note 14) |  |  |  |  |
| Data Feed Transmission | \$250 to \$3,000 | As incurred | As incurred | Third-party vendors |
| (Note 15) |  |  |  |  |
| Additional Funds – 3 Months (Note 16) | \$5,000 to \$90,000   | As incurred          | As incurred | Third-party vendors                 |
| MLS Fee (Note 17)                     | \$0 to \$10,000       | As incurred          | As incurred | Us                                  |
| DMS Fee (Note 18)                     | \$125                 | As incurred          | Annually    | Us                                  |
| TOTAL (Note 19)                       | \$64,475 to \$443,125 |                      |             |                                     |

#### Notes:

- 1. **Type of Expenditure**. The amounts in Item 7 assume you are an existing real estate brokerage company with approximately 50 affiliated real estate agents converting to a Business. If you are a new real estate brokerage company, your costs will likely be higher than those included in this Item 7. None of the fees paid to us in this chart are refundable. Whether such fees paid to third parties are refundable would depend upon their policies. We do not offer direct or indirect financing to Affiliates for any items.
  - 2. **Initial Fee.** The initial fee is \$35,000 and is payable in accorda

Question 14

In what states did Christies International Real Estate open one outlet in 2022?

Accepted Answer

| Column 1   | Column 2 | Column 3                               | Column 4          | Column 5                                     | Column 6          | Column 7                          | Column 8                             |
|------------|----------|----------------------------------------|-------------------|----------------------------------------------|-------------------|-----------------------------------|--------------------------------------|
| State      | Year     | Outlets at the Start of the Year | Outlets Opened | Outlets Reacquired From Franchisees | Outlets Closed | Outlets Sold to Franchisees | Outlets at the End of the Year |
| California | 2022     | 0                                      | 1                 | 0                                            | 0                 | 0                                 | 1                                    |
| Column 1 State | Column 2 Year | Column 3 Outlets at the Start of the Year | Column 4 Outlets Opened | Column 5 Outlets Reacquired From Franchisees | Column 6 Outlets Closed | Column 7 Outlets Sold to Franchisees | Column 8 Outlets at the End of the Year |
|-------------------|------------------|----------------------------------------------------|-------------------------------|----------------------------------------------------------|-------------------------------|-----------------------------------------------|--------------------------------------------------|
|                   | 2023             | 1                                                  | 0                             | 0                                                        | 0                             | 0                                             | 1                                                |
|                   | 2024             | 1                                                  | 0                             | 0                                                        | 0                             | 0                                             | 1                                                |
| Georgia           | 2022             | 0                                                  | 1                             | 0                                                        | 0                             | 0                                             | 1                                                |
|                   | 2023             | 1                                                  | 0                             | 0                                                        | 0                             | 0                                             | 1                                                |
|                   | 2024             | 1                                                  | 0                             | 0                                                        | 0                             | 0                                             | 1                                                |
| Illinois          | 2022             | 0                                                  | 1                             | 0                                                        | 0                             | 0                                             | 1                                                |
|                   | 2023             | 1                                                  | 0                             | 0                                                        | 0                             | 0                                             | 1                                                |
|                   | 2024             | 1                                                  | 0                             | 0                                                        | 0                             | 0                                             | 1                                                |
| New York (1)      | 2022             | 1                                                  | 0                             | 0                                                        | 0                             | -1                                            | 0                                                |
|                   | 2023             | 0                                                  | 0                             | 0                                                        | 0                             | 0                                             | 0                                                |
|                   | 2024             | 0                                                  | 0                             | 0                                                        | 0                             | 0                                             | 0                                                |
| TOTAL             | 2022             | 1                                                  | 3                             | 0                                                        | 0                             | -1                                            | 3                                                |
|                   | 2023             | 3                                                  | 0                             | 0                                                        | 0                             | 0                                             | 3                                                |
|                   | 2024             | 3                                                  | 0                             | 0                                                        | 0                             | 0                                             | 3                                                |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 47–53)

Question 15

What is the total cost of opening a Christies International Real Estate franchise, considering the initial fee in Item 5, the estimated initial investment in Item 7, and any potential ongoing fees from Item 6?

Accepted Answer

INVESTMENT

| Type of Expenditure (Note 1)                    | Estimated Amount    | Method of Payment | When Due                               | To Whom Payment is to be Made |
|-------------------------------------------------|---------------------|----------------------|----------------------------------------|-------------------------------------|
| Initial Fee | \$35,000 | Lump sum | When you sign the License | Us |
| (Note 2) |  |  | Agreement |  |
| Initial Training Expenses (Note 3)              | \$1,000 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Leasehold Improvements | \$0 to \$150,000 | As agreed upon | As agreed upon | Third-party vendors |
| (Note 4) |  |  |  |  |
| Rent and Security Deposit | \$3,000 to \$10,000 | As agreed upon | As agreed upon | Landlord |
| (Note 5) |  |  |  |  |
| "For Sale" Signage | \$1,000 to \$25,000 | As incurred | Before opening | Third-party vendors |
| (Note 6) |  |  |  |  |
| Office Signage | \$250 to \$5,000 | As incurred | Before opening | Third-party vendors |
| (Note 7) |  |  |  |  |
| Equipment and Furniture (Note 8)                | \$7,500 to \$50,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Computers and Software (Note 9)                 | \$2,500 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Start-up Supplies and | \$5,000 to \$10,000 | As incurred | As incurred | Third-party vendors and Us |
| Inventory |  |  |  |  |
| (Note 10) |  |  |  |  |
| Insurance (Note 11)                             | \$1,500 to \$25,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Professional Fees | \$1,500 to \$5,000 | As incurred | As incurred | Accountants, |
| (Note 12) |  |  |  | Attorneys |
| Type of Expenditure (Note 1)          | Estimated Amount      | Method of Payment | When Due    | To Whom Payment is to be Made |
|---------------------------------------|-----------------------|----------------------|-------------|-------------------------------------|
| Utilities | \$350 to \$2,500 | As incurred | As incurred | Third-party vendors |
| (Note 13) |  |  |  |  |
| Licensing Costs | \$500 to \$2,500 | As incurred | As incurred | State agencies |
| (Note 14) |  |  |  |  |
| Data Feed Transmission | \$250 to \$3,000 | As incurred | As incurred | Third-party vendors |
| (Note 15) |  |  |  |  |
| Additional Funds – 3 Months (Note 16) | \$5,000 to \$90,000   | As incurred          | As incurred | Third-party vendors                 |
| MLS Fee (Note 17)                     | \$0 to \$10,000       | As incurred          | As incurred | Us                                  |
| DMS Fee (Note 18)                     | \$125                 | As incurred          | Annually    | Us                                  |
| TOTAL (Note 19)                       | \$64,475 to \$443,125 |                      |             |                                     |

#### Notes:

- 1. **Type of Expenditure**. The amounts in Item 7 assume you are an existing real estate brokerage company with approximately 50 affiliated real estate agents converting to a Business. If you are a new real estate brokerage company, your costs will likely be higher than those included in this Item 7. None of the fees paid to us in this chart are refundable. Whether such fees paid to third parties are refundable would depend upon their policies. We do not offer direct or indirect financing to Affiliates for any items.
  - 2. **Initial Fee.** The initial fee is \$35,000 and is payable in accordance with Item 5.
- 3. **Initial Training Expenses.** We typically offer initial training in or near Chicago, Illinois, but we may offer the initial training electronically.

Question 16

What is the total estimated cost to start a Christies International Real Estate franchise, including the initial fee (Item 5), estimated investment (Item 7), and potential supply purchases (Item 5)?

Accepted Answer

INVESTMENT

| Type of Expenditure (Note 1)                    | Estimated Amount    | Method of Payment | When Due                               | To Whom Payment is to be Made |
|-------------------------------------------------|---------------------|----------------------|----------------------------------------|-------------------------------------|
| Initial Fee | \$35,000 | Lump sum | When you sign the License | Us |
| (Note 2) |  |  | Agreement |  |
| Initial Training Expenses (Note 3)              | \$1,000 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Leasehold Improvements | \$0 to \$150,000 | As agreed upon | As agreed upon | Third-party vendors |
| (Note 4) |  |  |  |  |
| Rent and Security Deposit | \$3,000 to \$10,000 | As agreed upon | As agreed upon | Landlord |
| (Note 5) |  |  |  |  |
| "For Sale" Signage | \$1,000 to \$25,000 | As incurred | Before opening | Third-party vendors |
| (Note 6) |  |  |  |  |
| Office Signage | \$250 to \$5,000 | As incurred | Before opening | Third-party vendors |
| (Note 7) |  |  |  |  |
| Equipment and Furniture (Note 8)                | \$7,500 to \$50,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Computers and Software (Note 9)                 | \$2,500 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Start-up Supplies and | \$5,000 to \$10,000 | As incurred | As incurred | Third-party vendors and Us |
| Inventory |  |  |  |  |
| (Note 10) |  |  |  |  |
| Insurance (Note 11)                             | \$1,500 to \$25,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Professional Fees | \$1,500 to \$5,000 | As incurred | As incurred | Accountants, |
| (Note 12) |  |  |  | Attorneys |
| Type of Expenditure (Note 1)          | Estimated Amount      | Method of Payment | When Due    | To Whom Payment is to be Made |
|---------------------------------------|-----------------------|----------------------|-------------|-------------------------------------|
| Utilities | \$350 to \$2,500 | As incurred | As incurred | Third-party vendors |
| (Note 13) |  |  |  |  |
| Licensing Costs | \$500 to \$2,500 | As incurred | As incurred | State agencies |
| (Note 14) |  |  |  |  |
| Data Feed Transmission | \$250 to \$3,000 | As incurred | As incurred | Third-party vendors |
| (Note 15) |  |  |  |  |
| Additional Funds – 3 Months (Note 16) | \$5,000 to \$90,000   | As incurred          | As incurred | Third-party vendors                 |
| MLS Fee (Note 17)                     | \$0 to \$10,000       | As incurred          | As incurred | Us                                  |
| DMS Fee (Note 18)                     | \$125                 | As incurred          | Annually    | Us                                  |
| TOTAL (Note 19)                       | \$64,475 to \$443,125 |                      |             |                                     |

#### Notes:

- 1. **Type of Expenditure**. The amounts in Item 7 assume you are an existing real estate brokerage company with approximately 50 affiliated real estate agents converting to a Business. If you are a new real estate brokerage company, your costs will likely be higher than those included in this Item 7. None of the fees paid to us in this chart are refundable. Whether such fees paid to third parties are refundable would depend upon their policies. We do not offer direct or indirect financing to Affiliates for any items.
  - 2. **Initial Fee.** The initial fee is \$35,000 and is payable in accordance with Item 5.
- 3.

Question 17

What is the total estimated initial investment for a Christies International Real Estate franchise, combining the initial fee from Item 5 and other expenses from Item 7, and how is this affected by the lack of financing in Item 10?

Accepted Answer

INVESTMENT

| Type of Expenditure (Note 1)                    | Estimated Amount    | Method of Payment | When Due                               | To Whom Payment is to be Made |
|-------------------------------------------------|---------------------|----------------------|----------------------------------------|-------------------------------------|
| Initial Fee | \$35,000 | Lump sum | When you sign the License | Us |
| (Note 2) |  |  | Agreement |  |
| Initial Training Expenses (Note 3)              | \$1,000 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Leasehold Improvements | \$0 to \$150,000 | As agreed upon | As agreed upon | Third-party vendors |
| (Note 4) |  |  |  |  |
| Rent and Security Deposit | \$3,000 to \$10,000 | As agreed upon | As agreed upon | Landlord |
| (Note 5) |  |  |  |  |
| "For Sale" Signage | \$1,000 to \$25,000 | As incurred | Before opening | Third-party vendors |
| (Note 6) |  |  |  |  |
| Office Signage | \$250 to \$5,000 | As incurred | Before opening | Third-party vendors |
| (Note 7) |  |  |  |  |
| Equipment and Furniture (Note 8)                | \$7,500 to \$50,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Computers and Software (Note 9)                 | \$2,500 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Start-up Supplies and | \$5,000 to \$10,000 | As incurred | As incurred | Third-party vendors and Us |
| Inventory |  |  |  |  |
| (Note 10) |  |  |  |  |
| Insurance (Note 11)                             | \$1,500 to \$25,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Professional Fees | \$1,500 to \$5,000 | As incurred | As incurred | Accountants, |
| (Note 12) |  |  |  | Attorneys |
| Type of Expenditure (Note 1)          | Estimated Amount      | Method of Payment | When Due    | To Whom Payment is to be Made |
|---------------------------------------|-----------------------|----------------------|-------------|-------------------------------------|
| Utilities | \$350 to \$2,500 | As incurred | As incurred | Third-party vendors |
| (Note 13) |  |  |  |  |
| Licensing Costs | \$500 to \$2,500 | As incurred | As incurred | State agencies |
| (Note 14) |  |  |  |  |
| Data Feed Transmission | \$250 to \$3,000 | As incurred | As incurred | Third-party vendors |
| (Note 15) |  |  |  |  |
| Additional Funds – 3 Months (Note 16) | \$5,000 to \$90,000   | As incurred          | As incurred | Third-party vendors                 |
| MLS Fee (Note 17)                     | \$0 to \$10,000       | As incurred          | As incurred | Us                                  |
| DMS Fee (Note 18)                     | \$125                 | As incurred          | Annually    | Us                                  |
| TOTAL (Note 19)                       | \$64,475 to \$443,125 |                      |             |                                     |

#### Notes:

- 1. **Type of Expenditure**. The amounts in Item 7 assume you are an existing real estate brokerage company with approximately 50 affiliated real estate agents converting to a Business. If you are a new real estate brokerage company, your costs will likely be higher than those included in this Item 7.

Question 18

What is the total estimated initial investment for a Christies International Real Estate franchise, considering the initial fee from Item 5, other expenses from Item 7, and the potential need for additional offices as described in Item 12?

Accepted Answer

INVESTMENT

| Type of Expenditure (Note 1)                    | Estimated Amount    | Method of Payment | When Due                               | To Whom Payment is to be Made |
|-------------------------------------------------|---------------------|----------------------|----------------------------------------|-------------------------------------|
| Initial Fee | \$35,000 | Lump sum | When you sign the License | Us |
| (Note 2) |  |  | Agreement |  |
| Initial Training Expenses (Note 3)              | \$1,000 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Leasehold Improvements | \$0 to \$150,000 | As agreed upon | As agreed upon | Third-party vendors |
| (Note 4) |  |  |  |  |
| Rent and Security Deposit | \$3,000 to \$10,000 | As agreed upon | As agreed upon | Landlord |
| (Note 5) |  |  |  |  |
| "For Sale" Signage | \$1,000 to \$25,000 | As incurred | Before opening | Third-party vendors |
| (Note 6) |  |  |  |  |
| Office Signage | \$250 to \$5,000 | As incurred | Before opening | Third-party vendors |
| (Note 7) |  |  |  |  |
| Equipment and Furniture (Note 8)                | \$7,500 to \$50,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Computers and Software (Note 9)                 | \$2,500 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Start-up Supplies and | \$5,000 to \$10,000 | As incurred | As incurred | Third-party vendors and Us |
| Inventory |  |  |  |  |
| (Note 10) |  |  |  |  |
| Insurance (Note 11)                             | \$1,500 to \$25,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Professional Fees | \$1,500 to \$5,000 | As incurred | As incurred | Accountants, |
| (Note 12) |  |  |  | Attorneys |
| Type of Expenditure (Note 1)          | Estimated Amount      | Method of Payment | When Due    | To Whom Payment is to be Made |
|---------------------------------------|-----------------------|----------------------|-------------|-------------------------------------|
| Utilities | \$350 to \$2,500 | As incurred | As incurred | Third-party vendors |
| (Note 13) |  |  |  |  |
| Licensing Costs | \$500 to \$2,500 | As incurred | As incurred | State agencies |
| (Note 14) |  |  |  |  |
| Data Feed Transmission | \$250 to \$3,000 | As incurred | As incurred | Third-party vendors |
| (Note 15) |  |  |  |  |
| Additional Funds – 3 Months (Note 16) | \$5,000 to \$90,000   | As incurred          | As incurred | Third-party vendors                 |
| MLS Fee (Note 17)                     | \$0 to \$10,000       | As incurred          | As incurred | Us                                  |
| DMS Fee (Note 18)                     | \$125                 | As incurred          | Annually    | Us                                  |
| TOTAL (Note 19)                       | \$64,475 to \$443

Question 19

What is the total estimated initial investment for a Christies International Real Estate franchise, considering the initial fee from Item 5, other expenses from Item 7, and the potential need for start-up supplies mentioned in Item 5?

Accepted Answer

INVESTMENT

| Type of Expenditure (Note 1)                    | Estimated Amount    | Method of Payment | When Due                               | To Whom Payment is to be Made |
|-------------------------------------------------|---------------------|----------------------|----------------------------------------|-------------------------------------|
| Initial Fee | \$35,000 | Lump sum | When you sign the License | Us |
| (Note 2) |  |  | Agreement |  |
| Initial Training Expenses (Note 3)              | \$1,000 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Leasehold Improvements | \$0 to \$150,000 | As agreed upon | As agreed upon | Third-party vendors |
| (Note 4) |  |  |  |  |
| Rent and Security Deposit | \$3,000 to \$10,000 | As agreed upon | As agreed upon | Landlord |
| (Note 5) |  |  |  |  |
| "For Sale" Signage | \$1,000 to \$25,000 | As incurred | Before opening | Third-party vendors |
| (Note 6) |  |  |  |  |
| Office Signage | \$250 to \$5,000 | As incurred | Before opening | Third-party vendors |
| (Note 7) |  |  |  |  |
| Equipment and Furniture (Note 8)                | \$7,500 to \$50,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Computers and Software (Note 9)                 | \$2,500 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Start-up Supplies and | \$5,000 to \$10,000 | As incurred | As incurred | Third-party vendors and Us |
| Inventory |  |  |  |  |
| (Note 10) |  |  |  |  |
| Insurance (Note 11)                             | \$1,500 to \$25,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Professional Fees | \$1,500 to \$5,000 | As incurred | As incurred | Accountants, |
| (Note 12) |  |  |  | Attorneys |
| Type of Expenditure (Note 1)          | Estimated Amount      | Method of Payment | When Due    | To Whom Payment is to be Made |
|---------------------------------------|-----------------------|----------------------|-------------|-------------------------------------|
| Utilities | \$350 to \$2,500 | As incurred | As incurred | Third-party vendors |
| (Note 13) |  |  |  |  |
| Licensing Costs | \$500 to \$2,500 | As incurred | As incurred | State agencies |
| (Note 14) |  |  |  |  |
| Data Feed Transmission | \$250 to \$3,000 | As incurred | As incurred | Third-party vendors |
| (Note 15) |  |  |  |  |
| Additional Funds – 3 Months (Note 16) | \$5,000 to \$90,000   | As incurred          | As incurred | Third-party vendors                 |
| MLS Fee (Note 17)                     | \$0 to \$10,000       | As incurred          | As incurred | Us                                  |
| DMS Fee (Note 18)                     | \$125                 | As incurred          | Annually    | Us                                  |
| TOTAL (Note 19)                       | \$64,475 to \$443,125 |                      |             |                                     |

#### Notes:

- 1. **Type of Expenditure**. The amounts in Item 7 assume you are an existing real estate brokerage company with approximately 50 affiliated real estate agents converting to a Business. If you are a new real estate brokerage company, your costs will likely be higher than those included in this Item 7. None of the fees paid to us in this chart are refundable. Whether such fees paid to third parties are refundable would depend upon their policies. We do not offer direct or indirect financing to Affiliates for any items.
  - 2. **Initial Fee.** The initial fee is \$35,000 and is payable in accordance with Item 5.
- 3.

Question 20

What is the total estimated initial investment for a Christies International Real Estate franchise, considering the initial fee from Item 5, other expenses from Item 7, and the potential need for relocation booklets mentioned in Item 5?

Accepted Answer

INVESTMENT

| Type of Expenditure (Note 1)                    | Estimated Amount    | Method of Payment | When Due                               | To Whom Payment is to be Made |
|-------------------------------------------------|---------------------|----------------------|----------------------------------------|-------------------------------------|
| Initial Fee | \$35,000 | Lump sum | When you sign the License | Us |
| (Note 2) |  |  | Agreement |  |
| Initial Training Expenses (Note 3)              | \$1,000 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Leasehold Improvements | \$0 to \$150,000 | As agreed upon | As agreed upon | Third-party vendors |
| (Note 4) |  |  |  |  |
| Rent and Security Deposit | \$3,000 to \$10,000 | As agreed upon | As agreed upon | Landlord |
| (Note 5) |  |  |  |  |
| "For Sale" Signage | \$1,000 to \$25,000 | As incurred | Before opening | Third-party vendors |
| (Note 6) |  |  |  |  |
| Office Signage | \$250 to \$5,000 | As incurred | Before opening | Third-party vendors |
| (Note 7) |  |  |  |  |
| Equipment and Furniture (Note 8)                | \$7,500 to \$50,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Computers and Software (Note 9)                 | \$2,500 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Start-up Supplies and | \$5,000 to \$10,000 | As incurred | As incurred | Third-party vendors and Us |
| Inventory |  |  |  |  |
| (Note 10) |  |  |  |  |
| Insurance (Note 11)                             | \$1,500 to \$25,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Professional Fees | \$1,500 to \$5,000 | As incurred | As incurred | Accountants, |
| (Note 12) |  |  |  | Attorneys |
| Type of Expenditure (Note 1)          | Estimated Amount      | Method of Payment | When Due    | To Whom Payment is to be Made |
|---------------------------------------|-----------------------|----------------------|-------------|-------------------------------------|
| Utilities | \$350 to \$2,500 | As incurred | As incurred | Third-party vendors |
| (Note 13) |  |  |  |  |
| Licensing Costs | \$500 to \$2,500 | As incurred | As incurred | State agencies |
| (Note 14) |  |  |  |  |
| Data Feed Transmission | \$250 to \$3,000 | As incurred | As incurred | Third-party vendors |
| (Note 15) |  |  |  |  |
| Additional Funds – 3 Months (Note 16) | \$5,000 to \$90,000   | As incurred          | As incurred | Third-party vendors                 |
| MLS Fee (Note 17)                     | \$0 to \$10,000       | As incurred          | As incurred | Us                                  |
| DMS Fee (Note 18)                     | \$125                 | As incurred          | Annually    | Us                                  |
| TOTAL (Note 19)                       | \$64,475 to \$443

Question 21

What is the total estimated initial investment for a Christies International Real Estate franchise, considering the initial fee from Item 5, other expenses from Item 7, and the potential need for buyer books mentioned in Item 5?

Accepted Answer

INVESTMENT

| Type of Expenditure (Note 1)                    | Estimated Amount    | Method of Payment | When Due                               | To Whom Payment is to be Made |
|-------------------------------------------------|---------------------|----------------------|----------------------------------------|-------------------------------------|
| Initial Fee | \$35,000 | Lump sum | When you sign the License | Us |
| (Note 2) |  |  | Agreement |  |
| Initial Training Expenses (Note 3)              | \$1,000 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Leasehold Improvements | \$0 to \$150,000 | As agreed upon | As agreed upon | Third-party vendors |
| (Note 4) |  |  |  |  |
| Rent and Security Deposit | \$3,000 to \$10,000 | As agreed upon | As agreed upon | Landlord |
| (Note 5) |  |  |  |  |
| "For Sale" Signage | \$1,000 to \$25,000 | As incurred | Before opening | Third-party vendors |
| (Note 6) |  |  |  |  |
| Office Signage | \$250 to \$5,000 | As incurred | Before opening | Third-party vendors |
| (Note 7) |  |  |  |  |
| Equipment and Furniture (Note 8)                | \$7,500 to \$50,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Computers and Software (Note 9)                 | \$2,500 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Start-up Supplies and | \$5,000 to \$10,000 | As incurred | As incurred | Third-party vendors and Us |
| Inventory |  |  |  |  |
| (Note 10) |  |  |  |  |
| Insurance (Note 11)                             | \$1,500 to \$25,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Professional Fees | \$1,500 to \$5,000 | As incurred | As incurred | Accountants, |
| (Note 12) |  |  |  | Attorneys |
| Type of Expenditure (Note 1)          | Estimated Amount      | Method of Payment | When Due    | To Whom Payment is to be Made |
|---------------------------------------|-----------------------|----------------------|-------------|-------------------------------------|
| Utilities | \$350 to \$2,500 | As incurred | As incurred | Third-party vendors |
| (Note 13) |  |  |  |  |
| Licensing Costs | \$500 to \$2,500 | As incurred | As incurred | State agencies |
| (Note 14) |  |  |  |  |
| Data Feed Transmission | \$250 to \$3,000 | As incurred | As incurred | Third-party vendors |
| (Note 15) |  |  |  |  |
| Additional Funds – 3 Months (Note 16) | \$5,000 to \$90,000   | As incurred          | As incurred | Third-party vendors                 |
| MLS Fee (Note 17)                     | \$0 to \$10,000       | As incurred          | As incurred | Us                                  |
| DMS Fee (Note 18)                     | \$125                 | As incurred          | Annually    | Us                                  |
| TOTAL (Note 19)                       | \$64,475 to \$443

Question 22

What is the total estimated initial investment for a Christies International Real Estate franchise, considering the initial fee from Item 5, other expenses from Item 7, and the potential need for technology upgrades?

Accepted Answer

INVESTMENT

| Type of Expenditure (Note 1)                    | Estimated Amount    | Method of Payment | When Due                               | To Whom Payment is to be Made |
|-------------------------------------------------|---------------------|----------------------|----------------------------------------|-------------------------------------|
| Initial Fee | \$35,000 | Lump sum | When you sign the License | Us |
| (Note 2) |  |  | Agreement |  |
| Initial Training Expenses (Note 3)              | \$1,000 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Leasehold Improvements | \$0 to \$150,000 | As agreed upon | As agreed upon | Third-party vendors |
| (Note 4) |  |  |  |  |
| Rent and Security Deposit | \$3,000 to \$10,000 | As agreed upon | As agreed upon | Landlord |
| (Note 5) |  |  |  |  |
| "For Sale" Signage | \$1,000 to \$25,000 | As incurred | Before opening | Third-party vendors |
| (Note 6) |  |  |  |  |
| Office Signage | \$250 to \$5,000 | As incurred | Before opening | Third-party vendors |
| (Note 7) |  |  |  |  |
| Equipment and Furniture (Note 8)                | \$7,500 to \$50,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Computers and Software (Note 9)                 | \$2,500 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Start-up Supplies and | \$5,000 to \$10,000 | As incurred | As incurred | Third-party vendors and Us |
| Inventory |  |  |  |  |
| (Note 10) |  |  |  |  |
| Insurance (Note 11)                             | \$1,500 to \$25,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Professional Fees | \$1,500 to \$5,000 | As incurred | As incurred | Accountants, |
| (Note 12) |  |  |  | Attorneys |
| Type of Expenditure (Note 1)          | Estimated Amount      | Method of Payment | When Due    | To Whom Payment is to be Made |
|---------------------------------------|-----------------------|----------------------|-------------|-------------------------------------|
| Utilities | \$350 to \$2,500 | As incurred | As incurred | Third-party vendors |
| (Note 13) |  |  |  |  |
| Licensing Costs | \$500 to \$2,500 | As incurred | As incurred | State agencies |
| (Note 14) |  |  |  |  |
| Data Feed Transmission | \$250 to \$3,000 | As incurred | As incurred | Third-party vendors |
| (Note 15) |  |  |  |  |
| Additional Funds – 3 Months (Note 16) | \$5,000 to \$90,000   | As incurred          | As incurred | Third-party vendors                 |
| MLS Fee (Note 17)                     | \$0 to \$10,000       | As incurred          | As incurred | Us                                  |
| DMS Fee (Note 18)                     | \$125                 | As incurred          | Annually    | Us                                  |
| TOTAL (Note 19)                       | \$64,475 to \$443

Question 23

What is the total initial investment for a Christies International Real Estate franchise, considering the initial fee in Item 5 and the estimated expenditures in Item 7?

Accepted Answer

INVESTMENT

| Type of Expenditure (Note 1)                    | Estimated Amount    | Method of Payment | When Due                               | To Whom Payment is to be Made |
|-------------------------------------------------|---------------------|----------------------|----------------------------------------|-------------------------------------|
| Initial Fee | \$35,000 | Lump sum | When you sign the License | Us |
| (Note 2) |  |  | Agreement |  |
| Initial Training Expenses (Note 3)              | \$1,000 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Leasehold Improvements | \$0 to \$150,000 | As agreed upon | As agreed upon | Third-party vendors |
| (Note 4) |  |  |  |  |
| Rent and Security Deposit | \$3,000 to \$10,000 | As agreed upon | As agreed upon | Landlord |
| (Note 5) |  |  |  |  |
| "For Sale" Signage | \$1,000 to \$25,000 | As incurred | Before opening | Third-party vendors |
| (Note 6) |  |  |  |  |
| Office Signage | \$250 to \$5,000 | As incurred | Before opening | Third-party vendors |
| (Note 7) |  |  |  |  |
| Equipment and Furniture (Note 8)                | \$7,500 to \$50,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Computers and Software (Note 9)                 | \$2,500 to \$10,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Start-up Supplies and | \$5,000 to \$10,000 | As incurred | As incurred | Third-party vendors and Us |
| Inventory |  |  |  |  |
| (Note 10) |  |  |  |  |
| Insurance (Note 11)                             | \$1,500 to \$25,000 | As incurred          | Before opening                         | Third-party vendors                 |
| Professional Fees | \$1,500 to \$5,000 | As incurred | As incurred | Accountants, |
| (Note 12) |  |  |  | Attorneys |
| Type of Expenditure (Note 1)          | Estimated Amount      | Method of Payment | When Due    | To Whom Payment is to be Made |
|---------------------------------------|-----------------------|----------------------|-------------|-------------------------------------|
| Utilities | \$350 to \$2,500 | As incurred | As incurred | Third-party vendors |
| (Note 13) |  |  |  |  |
| Licensing Costs | \$500 to \$2,500 | As incurred | As incurred | State agencies |
| (Note 14) |  |  |  |  |
| Data Feed Transmission | \$250 to \$3,000 | As incurred | As incurred | Third-party vendors |
| (Note 15) |  |  |  |  |
| Additional Funds – 3 Months (Note 16) | \$5,000 to \$90,000   | As incurred          | As incurred | Third-party vendors                 |
| MLS Fee (Note 17)                     | \$0 to \$10,000       | As incurred          | As incurred | Us                                  |
| DMS Fee (Note 18)                     | \$125                 | As incurred          | Annually    | Us                                  |
| TOTAL (Note 19)                       | \$64,475 to \$443

Question 24

Does access to all services and tools under the Computer System for Christies International Real Estate depend on providing an approved MLS data feed?

Accepted Answer

You are required to provide us with an approved data feed from your MLS(s) that enables us, our affiliates, you and your agents to display listings on the internet for consumers to view online. We may utilize this data feed for any reason, within the rules of the relevant MLS(s) or data feed providers, to run additional reports, aggregate information, track trends, or for any other allowed internal or public-facing marketing or data tracking initiative. You understand that if you fail to provide us with the information from your MLS, then you may not receive certain services or access to certain tools of the Computer System, including proprietary software. Therefore, in order to access all services and tools under the Computer System, you must provide us with the approved data feed from your MLS.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–33)

Question 25

According to the North Dakota Addendum, what happens if the choice of law in the Christies International Real Estate License Agreement conflicts with North Dakota law?

Accepted Answer

The choice of law other than the State of North Dakota may not be enforceable under the North Dakota Franchise Investment Law. If the laws of a state other than North Dakota govern, to the extent that such law conflicts with North Dakota law, North Dakota law will control.

Source: Item 23 — RECEIPT (FDD pages 54–177)

Question 26

What action will Christies International Real Estate take if a franchisee exceeds the 5% inventory limit in another franchisee's protected territory and does not cease such listings?

Accepted Answer

If you and your agents are licensed, as prescribed by law, to provide real estate brokerage services in an area where another licensee, franchisee or Affiliate has been granted a protected territory by us ("Other Area") but their grant does not prevent others from offering real estate brokerage services under the Marks in the Other Area, so long as you do not exceed 5% of your inventory (as measured by the number of properties) at any given time, you may list properties for sale using the Marks in the Other Area so long as they are listed from your Main Office or Additional Office. If your properties listed in the Other Area exceeds 5% of your inventory and, upon notice from us, you do not cease such listings promptly, you will be in default, and we can terminate the Agreement.

Source: Item 12 — TERRITORY (FDD pages 33–38)

Question 27

What action can Christies International Real Estate take if a franchisee fails to maintain required insurance coverage?

Accepted Answer

TIE'S INTERNATIONAL REAL ESTATE business that you operate, including this Business; and (5) provide that we will receive 30 days' prior written notice of any material change in or termination, expiration or cancellation of any policy. We periodically may, with prior written notice to you, increase the minimum liability protection requirements, and require different or additional kinds of insurance to reflect inflation or changes in standards of liability. If you at any time fail to maintain in effect any insurance coverage we require, or to furnish satisfactory evidence thereof, we, at our option, may obtain insurance coverage for you.

Source: Item 23 — RECEIPT (FDD pages 54–177)

Question 28

What action can Christies International Real Estate take if the franchisee fails to meet the minimum performance requirement?

Accepted Answer

If you fail to satisfy any Minimum Performance Requirement during the term of this Agreement, we have the right to terminate this Agreement, or, in lieu of termination, modify or rescind any such territorial or protected rights.

Source: Item 23 — RECEIPT (FDD pages 54–177)

Question 29

What actions can Christies International Real Estate take if a franchisee is in default of their agreement?

Accepted Answer

If your properties listed in the Other Area exceeds 5% of your inventory and, upon notice from us, you do not cease such listings promptly, you will be in default, and we can terminate the Agreement.

Source: Item 23 — RECEIPT (FDD pages 54–177)

Question 30

When is the Advertising Fund Fee due for a Christies International Real Estate franchise, if collected?

Accepted Answer

| Fee (Note 1)                                          | Amount (Note 2)                                                                                                | Due Date                                      | Remarks                                                                                                                                                                                                                                       |
|-------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Royalty Fee | 3% to 6% of Gross Revenues, depending on whether your Protected Territory is exclusive and other factors | Monthly | Paid via Electronic Funds Transfer (EFT). You and we will negotiate your Royalty Fee, which will vary based on whether your Protected Territory is exclusive and other factors. It will range between 3% and 6%. |
| Advertising Fund Fee | Currently not collected | If collected, monthly with the Royalty Fee | We do not currently have an Advertising Fund. If implemented, the Advertising Fund Fee will not exceed 3% of Gross Revenues. |

Source: Item 6 — OTHER FEES (FDD pages 14–17)

Question 31

Does Affiliate Group for Christies International Real Estate relieve rights afforded by Section 1542 of the Civil Code of California?

Accepted Answer

- 3. FOR CALIFORNIA RESIDENTS ONLY: You represent and warrant that YOU EXPRESSLY WAIVE ANY AND ALL RIGHTS AND BENEFITS UNDER CALIFORNIA CIVIL CODE §1542, which provides as follows:

A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.

The above release shall not apply to any liabilities arising under the California Franchise Investment Law, the California Franchise Relations Act, Indiana Code § 23-2-2.5.1 through 23-2-2.7-7, the Maryland Franchise Registration and Disclosure Law, Michigan Franchise Investment Law, Minnesota Franchise Act, North Dakota franchise laws, the Rhode Island Investment Act, and the Washington Franchise Investment Protection Act.

Source: Item 23 — RECEIPT (FDD pages 54–177)

Question 32

Is a Christies International Real Estate Affiliate required to sign a new agreement upon renewal, and can the terms be different?

Accepted Answer

m Performance Requirement during the term of this Agreement, we have the right to terminate this Agreement, or, in lieu of termination, modify or rescind any such territorial or protected rights.

#### **2. TERM AND RENEWAL**

- **2.1. Term.** This Agreement will be effective for a ten (10) year term beginning on the Effective Date specified in this Agreement.
- **2.2. Renewal.** You will have the right to renew the rights granted under this Agreement for one (1) additional term of ten (10) years, provided the following conditions are met:
  - (a) we are still offering licenses or franchises under the Marks and System;
  - (b) you meet our then-current standards for new CHRISTIE'S INTERNATIONAL REAL ESTATE Affiliates;
  - (c) you have given us written notice of your intention to renew at least 365 days before the end of the then-existing term of this Agreement;
  - (d) you are in compliance with all provisions of this Agreement, including all monetary obligations you owe to us or our affiliates, throughout the term of this Agreement;
  - (e) you have paid a renewal fee of \$1,000 (the "Renewal Fee") to us at least six months before the then-existing term of this Agreement expires;

Source: Item 23 — RECEIPT (FDD pages 54–177)

Question 33

Does the Christies International Real Estate agreement require California residents to waive rights under California Civil Code §1542?

Accepted Answer

- 3. FOR CALIFORNIA RESIDENTS ONLY: You represent and warrant that YOU EXPRESSLY WAIVE ANY AND ALL RIGHTS AND BENEFITS UNDER CALIFORNIA CIVIL CODE §1542, which provides as follows:

A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.

The above release shall not apply to any liabilities arising under the California Franchise Investment Law, the California Franchise Relations Act, Indiana Code § 23-2-2.5.1 through 23-2-2.7-7, the Maryland Franchise Registration and Disclosure Law, Michigan Franchise Investment Law, Minnesota Franchise Act, North Dakota franchise laws, the Rhode Island Investment Act, and the Washington Franchise Investment Protection Act.

Source: Item 23 — RECEIPT (FDD pages 54–177)

Question 34

Am I required to contract with 3rd party software providers and pay additional fees to utilize some of the functionality of the proprietary software for Christies International Real Estate?

Accepted Answer

In order to utilize some of the functionality of the proprietary software, you or your agents may be required to contract with 3rd party software providers and pay additional fees, or we may implement those additional technology tools, processes, or systems, and you will be responsible for paying additional fees related to those implementations.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–20)

Question 35

Does the amount of leasehold improvement expense for a Christies International Real Estate franchise depend on whether I already have a suitable office location?

Accepted Answer

You will operate the Business from a retail office location that we consent to.

We anticipate the amount of leasehold improvement expense that you will incur will depend upon whether you already have a suitable office location and, if not, the extent to which you will need to make renovations and repairs.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–20)

Question 36

Does the amount of rent for a Christies International Real Estate franchise depend on whether I already have a suitable office location?

Accepted Answer

ations and repairs.
- 5. **Rent and Security Deposit.** We anticipate your Business will need to rent a location containing approximately 1,000 to 10,000 square feet depending on the number of agents that are affiliated with your Business, the location of your Business, and other factors. The amount of rent that you will incur will depend upon whether you already have a suitable office location and will also vary considerably in different market areas. The figures in the chart are an estimate rent for the first three months plus a security deposit for one month's rent.
- 6. **"For Sale" Signage**. The amount you will spend on "for sale" signage will depend on a number of factors, including the number of agents affiliated with your Business, the number of properties the Business lists at a time, and other factors.
- 7. **Office Signage.** You must obtain exterior signage for identifying the Main and any Additional Offices of the Business. The type of signage allowed varies depending on city ordinances, property owner's association covenants, and landlord preferences.
- 8. **Equipment and Furniture.** You will need telephones, chairs, desks, file cabinets, tables, scanner, printer, and other items we specify. The amount you incur will depend on the size of your Main Office, the number of Additional Offices your Business operates, the number of agents affiliated with your Business, and other factors.
- 9. **Computers and Software**.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–20)

Question 37

Does the amount spent on equipment and furniture for a Christies International Real Estate franchise depend on the size of the Main Office?

Accepted Answer

nd landlord preferences.
- 8. **Equipment and Furniture.** You will need telephones, chairs, desks, file cabinets, tables, scanner, printer, and other items we specify. The amount you incur will depend on the size of your Main Office, the number of Additional Offices your Business operates, the number of agents affiliated with your Business, and other factors.
- 9. **Computers and Software**. We require you to use the computer hardware, software, and systems as we specify, which may include vendors that we designate from time to time, which may include us, our affiliates, or third parties. Even if you have the required computer hardware we require, you may incur costs to access the required computer software and systems we require, including our proprietary technology system.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–20)

Question 38

Is Christies International Real Estate authorized to supplement the information provided in Item 19 with information about possible performance at a particular location?

Accepted Answer

- (f) You acknowledge and agree any approval or recommendation of a site or location for your Business is not a representation or warranty of any kind, express or implied, of the suitability of the site for a CHRISTIE'S INTERNATIONAL REAL ESTATE business or any other purpose.

Our recommendation indicates only that we believe that the site meets our then acceptable criteria.

In addition, any recommendations, suggestions, or approvals of a proposed site are not a warranty, guarantee or representation that the site will achieve any level or amount of sales, revenue or profit as a CHRISTIE'S INTERNATIONAL REAL ESTATE business location.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD page 47)

Question 39

For California franchisees, when must Christies International Real Estate complete all its pre-opening obligations before collecting initial fees?

Accepted Answer

nchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise. If a franchisee is working with a franchise broker, franchisees are advised to carefully evaluate any information provided by the franchise broker about a franchise.
- **19. Item 5, Additional Disclosure.** Payment of the initial fee is deferred until such time as the franchisor completes its initial obligations and Affiliate is open for business.
# **WISCONSIN ADDENDUM TO THE DISCLOSURE DOCUMENT**

As to franchises governed by the Wisconsin Fair Dealership Law, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.

Item 17 is modified to also provide:

If the License Agreement contains any provisions that conflict with the Wisconsin Fair Dealership Law, the provisions of this Addendum shall prevail to the extent of such conflict.

For all franchisees residing in the State of Wisconsin, we will provide you at least 90 days' prior written notice of termination, cancellation or substantial change in competitive circumstances. The notice will state all the reasons for termination, cancellation or substantial change in competitive circumstances and will provide that you have 60 days in which to cure any claimed deficiency. If this deficiency is cured within 60 days, the notice will be void. If the reason for termination, cancellation or substantial change in competitive circumstances is nonpayment of sums due under the franchise, you will have 10 days to cure the deficiency.
# **EXHIBIT A-2**

# **TO THE CHRISTIE'S INTERNATIONAL REAL ESTATE FDD STATE-SPECIFIC ADDENDA TO THE LICENSE AGREEMENT**

- 1. California
- 2. Illinois
- 3. Maryland
- 4. Minnesota
- 5. New York
- 6. North Dakota
- 7. Rhode Island
- 8. Virginia
- 9. Washington
- 10. Wisconsin
# CALIFORNIA ADDENDUM TO LICENSE AGREEMENT

To the extent the California Franchise Investment Law, Cal. Corp. Code §§ 31000-31516 or the California Franchise Relations Act, Cal. Bus. & Prof. Code §§20000-20043 applies, the terms of this Addendum apply.

1.

Source: Item 23 — RECEIPT (FDD pages 54–177)

Question 40

What is the condition that allows Christies International Real Estate to purchase insurance on behalf of the franchisee?

Accepted Answer

| Fee (Note 1)                                          | Amount (Note 2)                                                                                                | Due Date                                      | Remarks                                                                                                                                                                                                                                       |
|-------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Insurance | Actual amount incurred | Upon demand | If you fail to purchase the insurance policies required under the License Agreement, we may purchase them on your behalf, and you will reimburse us. |

Source: Item 6 — OTHER FEES (FDD pages 14–17)

Question 41

What is the condition that triggers the Christies International Real Estate franchisor's option to purchase the business?

Accepted Answer

If you were new to the real estate brokerage business before you signed this Agreement and became an Affiliate, and you did not have an existing real estate brokerage business that converted to the CHRISTIE'S INTERNATIONAL REAL ESTATE brand, then if this Agreement expires or is terminated for any reason, we have the option, but not the obligation, upon 60 days' written notice from the date of expiration or termination, to purchase from you all the tangible and intangible assets relating to the Business (excluding any unsalable inventory, cash, short term investments and accounts receivable) (collectively, the "Purchased Assets").

We may assign this option to purchase, and assignment separate and apart from the remainder of this Agreement.

The purchase price for the Business will be the book value of the Purchased Assets; provided that: (a) we may exclude from the Purchased Assets any products or other items that are not in compliance with this Agreement; and (b) we may exclude from fair market value any provision for goodwill or similar value attributable to intangible property (such as the Marks and Confidential Information).

If the parties cannot agree on fair market value within a reasonable time, we may designate an independent appraiser to determine the fair market value of the Purchased Assets.

The determination of such appraiser will be binding on the parties hereto, and the costs of such appraisal will be divided equally between you and us.

The purchase price, as determined above, will be paid in cash at the closing of the purchase, which will occur within a reasonable time, not to exceed 60 days, after the fair market value is determined.

At the closing, you will deliver documents transferring good and merchantable title to the assets purchased, free and clear of all liens, encumbrances and liabilities to us or our designee and such other documents we may reasonably request to permit us to operate the Business without interruption.

We may set off against and reduce the purchase price by all amounts you owe to us or any of our affiliates.

Source: Item 23 — RECEIPT (FDD pages 54–177)

Question 42

What is the condition that triggers the Tax Indemnity obligation for a Christies International Real Estate franchisee?

Accepted Answer

| Fee (Note 1)                                          | Amount (Note 2)                                                                                                | Due Date                                      | Remarks                                                                                                                                                                                                                                       |
|-------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Royalty Fee | 3% to 6% of Gross Revenues, depending on whether your Protected Territory is exclusive and other factors | Monthly | Paid via Electronic Funds Transfer (EFT). You and we will negotiate your Royalty Fee, which will vary based on whether your Protected Territory is exclusive and other factors. It will range between 3% and 6%. |
| Advertising Fund Fee | Currently not collected | If collected, monthly with the Royalty Fee | We do not currently have an Advertising Fund. If implemented, the Advertising Fund Fee will not exceed 3% of Gross Revenues. |
| Additional Training, Training, Designated Programming | Currently, not collected, but the expected range would be between \$200 to \$3,000, per person per day | Upon demand | (Note 3) |
| Additional Training | Currently, \$500 per attendee per day | Upon demand |  |
| Annual Conference Fee | Currently, the expected range would be \$1,500 to \$3,500 per person | Before attending the Annual Conference |  |
| 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. |
| Renewal Fee | \$1,000 | Upon notice of intent to renew |  |
| Audit Fee | Cost of Audit | When incurred | Payable if audit discloses an under reporting of Gross Revenues or underpayment to us by 5% or more. |
| Insurance | Actual amount incurred | Upon demand | If you fail to purchase the insurance policies required under the License Agreement, we may purchase them on your behalf, and you will reimburse us. |
| Fee | Amount | Due Date | Remarks |
| (Note | (Note |  |  |
| 1) | 2) |  |  |
| Liquidated Damages | An amount equal to the average of the Royalty Fees payable by you over the previous 12 months (or the annualized amount of Royalty Fees if your Business has not been open for at least 12 months) and multiplied by the lesser of 24 or the number of months remaining on the term of the License Agreement | When the License Agreement is terminated prior to the end of the initial term | This is not a penalty but is an attempt to calculate of our damages for lost future revenue resulting from your breach or termination of the License Agreement. |
| Interest | Lessor of 1.5% per month or the maximum permitted by law | Owed on past due amounts |  |
| Tax indemnity | Actual amount incurred | Upon demand | If required by the federal, state or locality in which your Business is located. Including sales, excise or gross receipts tax or similar type tax on the initial fee, royalty, and other fees and costs. |

Source: Item 6 — OTHER FEES (FDD pages 14–17)

Question 43

What conditions must a Christies International Real Estate Affiliate meet to be eligible for renewal?

Accepted Answer

m Performance Requirement during the term of this Agreement, we have the right to terminate this Agreement, or, in lieu of termination, modify or rescind any such territorial or protected rights.

#### **2. TERM AND RENEWAL**

- **2.1. Term.** This Agreement will be effective for a ten (10) year term beginning on the Effective Date specified in this Agreement.
- **2.2. Renewal.** You will have the right to renew the rights granted under this Agreement for one (1) additional term of ten (10) years, provided the following conditions are met:
  - (a) we are still offering licenses or franchises under the Marks and System;
  - (b) you meet our then-current standards for new CHRISTIE'S INTERNATIONAL REAL ESTATE Affiliates;
  - (c) you have given us written notice of your intention to renew at least 365 days before the end of the then-existing term of this Agreement;
  - (d) you are in compliance with all provisions of this Agreement, including all monetary obligations you owe to us or our affiliates, throughout the term of this Agreement;
  - (e) you have paid a renewal fee of \$1,000 (the "Renewal Fee") to us at least six months before the then-existing term of this Agreement expires;

Source: Item 23 — RECEIPT (FDD pages 54–177)

Question 44

What conditions must a Christies International Real Estate Affiliate meet to be eligible for renewal of their Affiliate Agreement?

Accepted Answer

m Performance Requirement during the term of this Agreement, we have the right to terminate this Agreement, or, in lieu of termination, modify or rescind any such territorial or protected rights.

#### **2. TERM AND RENEWAL**

- **2.1. Term.** This Agreement will be effective for a ten (10) year term beginning on the Effective Date specified in this Agreement.
- **2.2. Renewal.** You will have the right to renew the rights granted under this Agreement for one (1) additional term of ten (10) years, provided the following conditions are met:
  - (a) we are still offering licenses or franchises under the Marks and System;
  - (b) you meet our then-current standards for new CHRISTIE'S INTERNATIONAL REAL ESTATE Affiliates;
  - (c) you have given us written notice of your intention to renew at least 365 days before the end of the then-existing term of this Agreement;
  - (d) you are in compliance with all provisions of this Agreement, including all monetary obligations you owe to us or our affiliates, throughout the term of this Agreement;
  - (e) you have paid a renewal fee of \$1,000 (the "Renewal Fee") to us at least six months before the then-existing term of this Agreement expires;

Source: Item 23 — RECEIPT (FDD pages 54–177)

Question 45

What conditions must be met for a Christies International Real Estate franchisee to validly waive exemplary damages?

Accepted Answer

- **18.5.

PUNITIVE DAMAGES WAIVER**.

EXCEPT AS SET FORTH IN 11.5, YOU AND WE AND OUR AFFILIATES AGREE TO WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO OR A CLAIM FOR ANY PUNITIVE OR EXEMPLARY DAMAGES AGAINST THE OTHER AND AGREE THAT IN THE EVENT OF ANY DISPUTE BETWEEN US, EACH WILL BE LIMITED TO THE RECOVERY OF ACTUAL DAMAGES SUSTAINED BY IT.

Source: Item 23 — RECEIPT (FDD pages 54–177)

Question 46

What is the consequence if the franchisee fails to attend the Christies International Real Estate annual conference?

Accepted Answer

- **4.8.

Annual Conference**.

In order to stay current on all programs, processes, procedures and other information relating to the operation of your CHRISTIE'S INTERNATIONAL REAL ESTATE business, you or a senior representative from your leadership team of whom we approve must attend any annual affiliate conference or other conference that we sponsor or designate.

You must pay to us our then-current conference fee and you are responsible for all travel and living expenses for you, your owners, brokers, agents and employees.

If you fail to attend the annual conference without our prior written consent, you must pay our then-current fee for two people for failing to attend the conference.

Source: Item 23 — RECEIPT (FDD pages 54–177)

Question 47

What is the consequence if a Christies International Real Estate franchisee and each Principal Owner do not sign a general release during renewal?

Accepted Answer

m Performance Requirement during the term of this Agreement, we have the right to terminate this Agreement, or, in lieu of termination, modify or rescind any such territorial or protected rights.

#### **2. TERM AND RENEWAL**

- **2.1. Term.** This Agreement will be effective for a ten (10) year term beginning on the Effective Date specified in this Agreement.
- **2.2. Renewal.** You will have the right to renew the rights granted under this Agreement for one (1) additional term of ten (10) years, provided the following conditions are met:
  - (a) we are still offering licenses or franchises under the Marks and System;
  - (b) you meet our then-current standards for new CHRISTIE'S INTERNATIONAL REAL ESTATE Affiliates;
  - (c) you have given us written notice of your intention to renew at least 365 days before the end of the then-existing term of this Agreement;
  - (d) you are in compliance with all provisions of this Agreement, including all monetary obligations you owe to us or our affiliates, throughout the term of this Agreement;
  - (e) you have paid a renewal fee of \$1,000 (the "Renewal Fee") to us at least six months before the then-existing term of this Agreement expires;

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–47)

Question 48

What is the consequence if a Christies International Real Estate franchisee does not sign the required general release during renewal?

Accepted Answer

m Performance Requirement during the term of this Agreement, we have the right to terminate this Agreement, or, in lieu of termination, modify or rescind any such territorial or protected rights.

#### **2. TERM AND RENEWAL**

- **2.1. Term.** This Agreement will be effective for a ten (10) year term beginning on the Effective Date specified in this Agreement.
- **2.2. Renewal.** You will have the right to renew the rights granted under this Agreement for one (1) additional term of ten (10) years, provided the following conditions are met:
  - (a) we are still offering licenses or franchises under the Marks and System;
  - (b) you meet our then-current standards for new CHRISTIE'S INTERNATIONAL REAL ESTATE Affiliates;
  - (c) you have given us written notice of your intention to renew at least 365 days before the end of the then-existing term of this Agreement;
  - (d) you are in compliance with all provisions of this Agreement, including all monetary obligations you owe to us or our affiliates, throughout the term of this Agreement;
  - (e) you have paid a renewal fee of \$1,000 (the "Renewal Fee") to us at least six months before the then-existing term of this Agreement expires;

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–47)

Question 49

What is the consequence if a Christies International Real Estate franchisee does not sign our then-current broker Affiliate license agreement during renewal?

Accepted Answer

m Performance Requirement during the term of this Agreement, we have the right to terminate this Agreement, or, in lieu of termination, modify or rescind any such territorial or protected rights.

#### **2. TERM AND RENEWAL**

- **2.1. Term.** This Agreement will be effective for a ten (10) year term beginning on the Effective Date specified in this Agreement.
- **2.2. Renewal.** You will have the right to renew the rights granted under this Agreement for one (1) additional term of ten (10) years, provided the following conditions are met:
  - (a) we are still offering licenses or franchises under the Marks and System;
  - (b) you meet our then-current standards for new CHRISTIE'S INTERNATIONAL REAL ESTATE Affiliates;
  - (c) you have given us written notice of your intention to renew at least 365 days before the end of the then-existing term of this Agreement;
  - (d) you are in compliance with all provisions of this Agreement, including all monetary obligations you owe to us or our affiliates, throughout the term of this Agreement;
  - (e) you have paid a renewal fee of \$1,000 (the "Renewal Fee") to us at least six months before the then-existing term of this Agreement expires;

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–47)

Question 50

What is the consequence if the Trademark License Agreement for Christies International Real Estate is terminated or expires?

Accepted Answer

If the Trademark License Agreement is terminated or expires, you could lose the right to use the trademarks licensed to us under the Trademark License Agreement, subject to the discussion in the following paragraph.

Christie, Manson & Woods, Limited, our former affiliate, owns the trademarks set forth above ("IP Owner"), which are our principal Marks. IP Owner licenses these Marks to At World Properties, LLC (our "Parent," as described in Item 1) pursuant to a Trademark License Agreement dated November 16, 2020 (the "Trademark License Agreement"). The term of the Trademark License Agreement is 50 years, with two 25-year renewal options. The Trademark License Agreement provides us the exclusive right to use these Marks in connection with the marketing, sale or lease of luxury real estate and in connection with this licensing program. IP Owner may terminate the Trademark License Agreement if we breach and fail to cure or reasonably mitigate a material term of the agreement within 60 days; if we or IP Owner experiences a bankruptcy
event; if certain of our interests or assets are acquired by a competitor; if we cease offering products or services using the Marks for a period of 6 months; if we cease to conduct our business; if we are otherwise liquidated or dissolved; if there is a material breach by us of the Right of First Offer agreement that was executed on the same date as the Trademark License Agreement; if we fail to meet certain performance metrics pertaining to number of offices and fees paid to IP Owner; or if IP Owner, the Marks, or the goodwill associated therewith are materially tarnished, damaged or diminished and that tarnishment, damage or diminishment, which was not caused by a breach of the Trademark License Agreement, damages our business, etc., as further described in the Trademark License Agreement.

If the Trademark License Agreement terminates, your right to use the Marks will continue for the length of the term of your License Agreement, but not longer than 10 years. Upon termination of the Trademark License Agreement, and in other certain circumstances described in the Trademark License Agreement, including certain defaults by us, IP Owner has the right to step into certain of our rights under the Trademark License Agreement and under your License Agreement with us, including those rights pertaining to your use of the Marks.

Source: Item 13 — TRADEMARKS (FDD pages 38–40)

Question 51

What are the consequences if a Christies International Real Estate franchisee fails to meet the minimum performance requirements?

Accepted Answer

If you fail to satisfy any Minimum Performance Requirement during the term of this Agreement, we have the right to terminate this Agreement, or, in lieu of termination, modify or rescind any such territorial or protected rights.

Source: Item 23 — RECEIPT (FDD pages 54–177)

Question 52

What are the consequences if a Christies International Real Estate franchisee violates the terms of the Trademark License Agreement?

Accepted Answer

If your properties listed in the Other Area exceeds 5% of your inventory and, upon notice from us, you do not cease such listings promptly, you will be in default, and we can terminate the Agreement.

If you or your Principal Owners continue to use the Marks, and/or use the System after the expiration of this Agreement, you will be in default of this Agreement and we may exercise all remedies available to us, including those listed in Section 11. We may charge you a Royalty Fee in the amount of your highest Royalty Fee paid to us in the last twenty-four (24) months of the Term for each month you operate after expiration. In addition, IP Owner may seek remedies pursuant to its rights under the Trademark License Agreement.

Source: Item 23 — RECEIPT (FDD pages 54–177)

Question 53

What constitutes a default for a Christies International Real Estate franchisee listing properties in another's protected territory?

Accepted Answer

If you and your agents are licensed, as prescribed by law, to provide real estate brokerage services in an area where another licensee, franchisee or Affiliate has been granted a protected territory by us ("Other Area") but their grant does not prevent others from offering real estate brokerage services under the Marks in the Other Area, so long as you do not exceed 5% of your inventory (as measured by the number of properties) at any given time, you may list properties for sale using the Marks in the Other Area so long as they are listed from your Main Office or Additional Office. If your properties listed in the Other Area exceeds 5% of your inventory and, upon notice from us, you do not cease such listings promptly, you will be in default, and we can terminate the Agreement. Conversely, to the extent another licensee, franchisee, Affiliate, or its agents, are licensed as prescribed by law, to provide real estate brokerage services in your Protected Territory, we will use commercially reasonable efforts to limit such party from listing more than 5% of its inventory of properties using the Marks in your Protected Territory, assuming such party has not been granted unlimited rights by us. However, we have no obligation to enforce this against such other parties.

Source: Item 12 — TERRITORY (FDD pages 33–38)

Question 54

Does the cost of insurance for a Christies International Real Estate franchise vary depending on geographic location?

Accepted Answer

- 11. **Insurance.** You will need to obtain insurance in the types, amounts and coverages as we specify, as summarized in Item 8.

Your costs will vary depending on your geographic location, the insurance company that issues your Business's policies, the number of agents affiliated with the Business, and other factors.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–20)

Question 55

Are covenants not to compete in the Christies International Real Estate license agreement always enforceable in North Dakota?

Accepted Answer

Covenants not to compete during the term of and upon termination or expiration of the license agreement are enforceable only under certain conditions according to North Dakota law. If the License Agreement contains a covenant not to compete that is inconsistent with North Dakota law, the covenant may be unenforceable.

Source: Item 23 — RECEIPT (FDD pages 54–177)

Question 56

Can the data security policies for Christies International Real Estate be changed from time to time?

Accepted Answer

tions app with back-end analytics for presenting and following up on offers and other critical communications.

You must ensure that any technology you use in connection with the Business, includes and maintains appropriate data security controls, and complies with our data security policies, which may be designated in our Operations Manual or otherwise by us from time to time, which include, but are not limited to, the following: (i) authentication mechanisms designed so that they cannot be bypassed to gain unauthorized access to systems, (ii) encryption; and (iii) undertaking password protection measures, such as protecting the form in which they are stored and complexity of character classes and password length.

You are required to provide us with an approved data feed from your MLS(s) that enables us, our affiliates, you and your agents to display listings on the internet for consumers to view online. We may utilize this data feed for any reason, within the rules of the relevant MLS(s) or data feed providers, to run additional reports, aggregate information, track trends, or for any other allowed internal or public-facing marketing or data tracking initiative.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–33)

Question 57

What is the dependency between compliance with the broker Affiliate license agreement and a Christies International Real Estate franchisee's ability to renew?

Accepted Answer

m Performance Requirement during the term of this Agreement, we have the right to terminate this Agreement, or, in lieu of termination, modify or rescind any such territorial or protected rights.

#### **2. TERM AND RENEWAL**

- **2.1. Term.** This Agreement will be effective for a ten (10) year term beginning on the Effective Date specified in this Agreement.
- **2.2. Renewal.** You will have the right to renew the rights granted under this Agreement for one (1) additional term of ten (10) years, provided the following conditions are met:
  - (a) we are still offering licenses or franchises under the Marks and System;
  - (b) you meet our then-current standards for new CHRISTIE'S INTERNATIONAL REAL ESTATE Affiliates;
  - (c) you have given us written notice of your intention to renew at least 365 days before the end of the then-existing term of this Agreement;
  - (d) you are in compliance with all provisions of this Agreement, including all monetary obligations you owe to us or our affiliates, throughout the term of this Agreement;
  - (e) you have paid a renewal fee of \$1,000 (the "Renewal Fee") to us at least six months before the then-existing term of this Agreement expires;

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–47)

Question 58

What is the dependency for deferring initial fees and payments for Christies International Real Estate franchisees?

Accepted Answer

- **19.
Item 5, Additional Disclosure.** Payment of the initial fee is deferred until such time as the franchisor completes its initial obligations and Affiliate is open for business.

Source: Item 23 — RECEIPT (FDD pages 54–177)

Question 59

What is the dependency for a Christies International Real Estate franchisee to be able to use a new supplier?

Accepted Answer

We consider a variety of factors when considering which suppliers we will deem as approved suppliers, such as price, service, quality, warranty, delivery terms, ability to provide products and services that meet our specifications, responsiveness, and other commercially reasonable benchmarks. If you want to use a material, supply, equipment, product or sign that we have not yet approved, or you want to purchase any items from any supplier that we have not approved, you must first notify us in writing and must submit to us, at our request, sufficient information, specifications, and samples for us to determine whether the services, material, supply, equipment, product or sign complies with our specifications and standards, or whether the supplier meets our approved supplier criteria. We reserve the right to approve or disapprove without any obligation
to provide an explanation of the approval criteria to you. Within 90 days of receiving your request, we will either accept or reject the proposed item or supplier. You will not distribute or offer for sale any products or services of the proposed supplier until you receive our written approval. We do not charge a fee to evaluate alternative supplier or items. We may revoke our approval of any supplier or item with 30 days' prior written notice to you. Upon receipt of written notice of such revocation, you must cease to purchase from the disapproved supplier(s) or to purchase the disapproved item(s).

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)

Question 60

What is the dependency for a Christies International Real Estate franchisee to commence operations of their Business?

Accepted Answer

. You must obtain our prior written consent to the physical address of your Business ("Main Office") before you can commence operations of your Business. Under the License Agreement, you will be permitted to use our marketing, business development, and advertising techniques; operating procedures; brand standards; business methods; and other expertise we may supply to you (collectively, the "System"). It will be your sole responsibility to operate your Business in compliance with all applicable laws and regulations, as required under the License Agreement, and as outlined in the Operations Manual, which includes the Brand Guidelines that pertain to the use of the Marks. Under the License Agreement, you may only operate the Business from the Main Office. If you desire to operate the Business at multiple locations, you must obtain our prior written consent, and sign our "Additional Office Addendum" or "AOA."

At the time you sign the License Agreement, you will identify one individual who will operate the Business on a full-time basis (the "Responsible Broker"). The Responsible Broker must be a licensed real estate broker in all jurisdictions you will operate the Business.

We expect that most, if not all, License Agreements that we sign with Affiliates will be with established real estate brokerage businesses who will be converting to our system and will operate using the Marks.

# Laws and Regulations

You must comply with all applicable laws and regulations that apply to your Business, including those governing the operations of real estate brokerages. Additionally, you, your Business, and/or your Responsible Broker must be a licensed real estate broker in every jurisdiction you operate the Business. Each real estate broker and real estate agent must obtain and maintain the required applicable licenses and permits required within the jurisdictions the Business will operate. You are
solely responsible for investigating and complying with all applicable laws and regulations.

In addition to your compliance with applicable laws, you must comply with the rules and regulations of the state and local boards of realtors within the geographic area you operate the Business, however, you are not required to comply with any codes, standards, rules, or regulations should they potentially violate any state or federal antitrust or unfair competition laws.

# Competition

The general market for real estate brokerage services is well developed.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–11)

Question 61

What is the dependency for a Christies International Real Estate franchisee to provide real estate brokerage services in another area?

Accepted Answer

If you and your agents are licensed, as prescribed by law, to provide real estate brokerage services in an area where another licensee, franchisee or Affiliate has been granted a protected territory by us ("Other Area") but their grant does not prevent others from offering real estate brokerage services under the Marks in the Other Area, so long as you do not exceed 5% of your inventory (as measured by the number of properties) at any given time, you may list properties for sale using the Marks in the Other Area so long as they are listed from your Main Office or Additional Office. If your properties listed in the Other Area exceeds 5% of your inventory and, upon notice from us, you do not cease such listings promptly, you will be in default, and we can terminate the Agreement. Conversely, to the extent another licensee, franchisee, Affiliate, or its agents, are licensed as prescribed by law, to provide real estate brokerage services in your Protected Territory, we will use commercially reasonable efforts to limit such party from listing more than 5% of its inventory of properties using the Marks in your Protected Territory, assuming such party has not been granted unlimited rights by us. However, we have no obligation to enforce this against such other parties.

Source: Item 12 — TERRITORY (FDD pages 33–38)

Question 62

What is the dependency between the franchisee providing notice and Christies International Real Estate providing indemnification for trademark claims?

Accepted Answer

As a further condition to indemnification, the franchisee must provide notice to franchisor of any such claim immediately and tender the defense of the claim to franchisor.

If franchisor accepts tender of defense, franchisor has the right to manage the defense of the claim, including the right to compromise, settle or otherwise resolve the claim, or to determine whether to appeal a final determination of the claim.

Source: Item 23 — RECEIPT (FDD pages 54–177)

Question 63

What is the dependency for a Christies International Real Estate franchisee to vary signage requirements?

Accepted Answer

**Signs.** You must begin using yard signs containing our Marks within 90 days from the date of the License Agreement. You must install one (1) or more exterior signs displaying your Trade Name on your Main Office and any Additional Offices. Your sign(s) must conform to the Brand Guidelines. The sign(s) utilizing our Marks must be installed within ninety (90) days from the date of the License Agreement. You must obtain our prior written permission for any exception to the office sign requirements due to local ordinances or other reasons and you must provide written documentation reflecting the reasons for varying the signage (License Agreement, Sections 5.1 and 7.10).

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–33)

Question 64

What is the dependency between meeting the then-current standards for new Affiliates and a Christies International Real Estate franchisee's ability to renew?

Accepted Answer

m Performance Requirement during the term of this Agreement, we have the right to terminate this Agreement, or, in lieu of termination, modify or rescind any such territorial or protected rights.

#### **2. TERM AND RENEWAL**

- **2.1. Term.** This Agreement will be effective for a ten (10) year term beginning on the Effective Date specified in this Agreement.
- **2.2. Renewal.** You will have the right to renew the rights granted under this Agreement for one (1) additional term of ten (10) years, provided the following conditions are met:
  - (a) we are still offering licenses or franchises under the Marks and System;
  - (b) you meet our then-current standards for new CHRISTIE'S INTERNATIONAL REAL ESTATE Affiliates;
  - (c) you have given us written notice of your intention to renew at least 365 days before the end of the then-existing term of this Agreement;
  - (d) you are in compliance with all provisions of this Agreement, including all monetary obligations you owe to us or our affiliates, throughout the term of this Agreement;
  - (e) you have paid a renewal fee of \$1,000 (the "Renewal Fee") to us at least six months before the then-existing term of this Agreement expires;

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–47)

Christies_International_Real_Estate 2025 FDD FAQ