What assets can Christies International Real Estate exclude from the purchase of the business?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
termination or expiration of this Agreement, you will return to us all of our Confidential Information embodied in tangible form, and will destroy, unless otherwise agreed, all other sources that contain or reflect any such Confidential Information. Notwithstanding the foregoing, you may retain Confidential Information as needed solely for legal, tax, and insurance purposes, but the information retained will remain subject at all times to the confidentiality restrictions of this Agreement.
- 11.3. Our Option to Purchase the Business. 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 receiva
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate Franchise Disclosure Document, Christies International Real Estate has the option to purchase a franchisee's tangible and intangible assets if the franchisee was new to the real estate brokerage business before signing the agreement and did not convert an existing real estate brokerage to the Christies International Real Estate brand. This option is available to Christies International Real Estate if the agreement expires or is terminated for any reason.
However, Christies International Real Estate can exclude certain assets from this purchase. Specifically, the agreement states that unsalable inventory, cash, short term investments, and accounts receivable are excluded from the assets Christies International Real Estate may purchase. Additionally, Christies International Real Estate may exclude any products or other items that do not comply with the franchise agreement.
Furthermore, Christies International Real Estate can exclude any provision for goodwill or similar value attributable to intangible property, such as the Marks and Confidential Information, when determining the fair market value of the assets to be purchased. This means that the franchisee will not be compensated for the brand recognition or confidential information they have developed during the term of the franchise agreement.