Can Christies International Real Estate assign its option to purchase the business of a Christies International Real Estate franchisee?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 business under specific conditions, and it may assign this option to another party. This option applies if the franchisee was new to the real estate brokerage business before signing the agreement and did not convert an existing real estate brokerage business to the Christies International Real Estate brand.
Specifically, if the Franchise Agreement expires or is terminated for any reason, Christies International Real Estate has the option, but not the obligation, to purchase all tangible and intangible assets related to the business, excluding unsalable inventory, cash, short-term investments, and accounts receivable. Christies International Real Estate must provide 60 days' written notice from the date of expiration or termination to exercise this option.
The FDD explicitly states that Christies International Real Estate may assign its option to purchase the franchisee's business separately from the rest of the agreement. This means that Christies International Real Estate could transfer its right to purchase the business to a third party, who would then have the ability to buy the franchisee's assets under the terms outlined in the agreement. This clause provides Christies International Real Estate with flexibility in managing its network and potentially facilitating transitions or acquisitions within the system.