What activities are prohibited for the Responsible Broker of a Christies International Real Estate franchise?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.1. Non-Solicitation of Customers. You, each Principal Owner, and the Responsible Broker, will not, during the term of this Agreement, and for a period of 1 year after its expiration or termination, directly or indirectly, divert or attempt to divert any CHRISTIE'S INTERNATIONAL REAL ESTATE business, account or customer of the Business or any other CHRISTIE'S INTERNATIONAL REAL ESTATE business referred to you by us, or the System to any competing business including, but not limited to, the competing businesses set forth in Section 6.3(e). We will not during the term of this Agreement, and for a period of 1 year after its expiration or termination, divert or attempt to divert any business, account, client, or customer of yours that we gained knowledge of in connection with this Agreement.
- 13.2. Covenant Not to Compete During Term. You and each Principal Owner will not, during the term of this Agreement, directly, or as an employee, agent, consultant, partner, officer, director or shareholder of any other person, firm, entity, partnership or corporation, own, operate, lease, franchise, conduct, engage in, be connected with, have any interest in or assist any person or entity engaged in any business that offers for sale real estate brokerage services, or any other related business that is similar to, offers the same or similar products or services to, or is otherwise competitive with, the Business, anywhere in the United States, including, but not limited to, those competing businesses set forth in Section 6.3(e), except the ownership of securities listed on a stock exchange or traded on the over-the-counter market that represent 1% or less of that class of securities. For clarification and avoidance of doubt, the above restriction regarding the operation of competing businesses applies to any separate real estate brokerage business under any brand, or Protected Territories or Broker Affiliate License Agreements or other territories, franchises, licenses or other businesses you, your affiliates or Principal Owner have with us or any of our affiliates, including following the termination or expiration of any such rights.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate Franchise Disclosure Document, the Responsible Broker is subject to certain restrictions, primarily related to non-solicitation and non-competition. During the term of the Franchise Agreement and for one year after its expiration or termination, the Responsible Broker cannot directly or indirectly divert or attempt to divert any Christies International Real Estate business, account, or customer of the Business or any other Christies International Real Estate business referred to them by the franchisor or the System to any competing business. This prevents the Responsible Broker from leveraging their position to steal clients or business opportunities for their own benefit or for a competing entity.
Additionally, during the term of the Franchise Agreement, the Responsible Broker is prohibited from owning, operating, or being involved with any business that offers real estate brokerage services or related services that are similar to or competitive with the Christies International Real Estate Business anywhere in the United States. This includes being an employee, agent, consultant, partner, officer, director, or shareholder of any competing firm. The only exception is the ownership of securities listed on a stock exchange or traded over-the-counter, representing 1% or less of that class of securities. This clause ensures that the Responsible Broker remains fully committed to the Christies International Real Estate franchise and does not divide their attention or resources with competing ventures.
These restrictions are designed to protect Christies International Real Estate's market position, customer relationships, and overall business interests. The non-solicitation clause prevents unfair competition by ensuring that the Responsible Broker does not exploit their access to clients and business opportunities gained through the franchise system. The non-compete clause ensures that the Responsible Broker's efforts are solely dedicated to the success of the Christies International Real Estate franchise during the term of the agreement. Prospective franchisees should carefully consider these limitations and how they might impact their future business activities before entering into a Franchise Agreement with Christies International Real Estate.