In the Christies International Real Estate agreement, what is the meaning of 'Guarantor'?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
| In consideration of the execution of the CHRISTIE'S INTERNATIONAL REAL ESTATE Broker |
|---|
| Affiliate License Agreement dated (the "Agreement") by Christie's |
| International Real Estate, LLC (the "Company," "we" or "us"), each of the undersigned (a "Guarantor") |
| personally and unconditionally guarantees to us, and our successors and assigns, for the term of the |
| Agreement and thereafter as provided in the Agreement that (the |
| "Affiliate" or "you") will timely pay and perform each and every undertaking, obligation, agreement and |
| covenant stated in the Agreement; and agrees to be personally bound by, and personally liable for the breach |
| of, each and every provision in the Agreement. All capitalized terms contained herein and not defined |
| herein will have the same meaning as provided in the Agreement. |
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate Franchise Disclosure Document, a 'Guarantor' refers to an individual who personally and unconditionally guarantees the obligations of the Affiliate (the franchisee) under the Broker Affiliate License Agreement. This guarantee extends for the entire term of the agreement and beyond, as specified in the agreement.
In practical terms, the Guarantor is personally liable if the Christies International Real Estate franchisee fails to meet its financial or performance obligations. This means the Guarantor's personal assets are at risk if the franchisee breaches any provision of the agreement. The Guarantor agrees to be personally bound by and liable for any breaches of the agreement.
This requirement is a common practice in franchising, especially when the franchisee is a corporate entity with limited assets. By requiring a personal guarantee, Christies International Real Estate seeks to ensure that there is an individual with sufficient assets who is ultimately responsible for the franchisee's performance. Prospective franchisees should carefully consider the implications of having a Guarantor, as it represents a significant personal financial risk.