Does the Christies International Real Estate agreement create a fiduciary relationship?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that by executing this Agreement you are agreeing to establish and operate an independent CHRISTIE'S INTERNATIONAL REAL ESTATE business, the success of which depends on, among other things, your individual ability to operate your business, attract and retain qualified agents and other personnel, and otherwise operate all phases of an independent business over which you will have substantial control.
As an independent business owner, you agree that: (i) the relationship created by this Agreement is not a relationship between principal and agent, or that it is a fiduciary relationship; (ii) you are not our employee and will not earn any wages, nor be eligible for or receive any of the other benefits normally provided to employees, but rather your income will solely be the profits you earn from the operation of your Business; (iii) we are not the employer or coemployer of any employee that you hire; (iv) except as set forth herein, all management, personnel, and training requirements are at your discretion and are your responsibility; (v) you are responsible for ensuring that your Business operates in accordance with the law of the state, county, city, and town in which you operate; (vi) you alone are permitted to contract with your customers and you are required to sign all contracts and agreements, including purchase agreements, using your independent business name; (vii) you are free to set the prices you charge your customers, so long as those charges comply with any and all mandatory policies we prescribe in the Operations Manual relating to maximum or minimum charges; and (viii) we shall not be liable for damages to any person or property arising directly or indirectly out of your operation of your Business nor shall we be liable for any taxes, assessments, fines or penalties levied upon you or your Business arising out of your Business.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate FDD, the franchise agreement explicitly states that the relationship between the franchisor and franchisee is not a fiduciary one. The agreement emphasizes that franchisees are independent business owners responsible for their own success, including attracting and retaining qualified agents and managing all aspects of their business.
Christies International Real Estate franchisees are not considered employees and do not receive wages or employee benefits from the franchisor. Their income is solely derived from the profits generated by their independently operated business. Franchisees are responsible for all management, personnel, and training requirements, ensuring their business complies with local laws and regulations.
Furthermore, Christies International Real Estate franchisees have the autonomy to contract with their own customers and set their own prices, provided they adhere to any mandatory policies outlined in the Operations Manual regarding maximum or minimum charges. The franchisor is not liable for damages, taxes, assessments, fines, or penalties arising from the franchisee's business operations. This reinforces the independent nature of the franchise and the absence of a fiduciary relationship.