What conditions must a Christies International Real Estate Affiliate meet to be eligible for renewal?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
m Performance Requirement during the term of this Agreement, we have the right to terminate this Agreement, or, in lieu of termination, modify or rescind any such territorial or protected rights.
2. TERM AND RENEWAL
- 2.1. Term. This Agreement will be effective for a ten (10) year term beginning on the Effective Date specified in this Agreement.
- 2.2. Renewal. You will have the right to renew the rights granted under this Agreement for one (1) additional term of ten (10) years, provided the following conditions are met:
- (a) we are still offering licenses or franchises under the Marks and System;
- (b) you meet our then-current standards for new CHRISTIE'S INTERNATIONAL REAL ESTATE Affiliates;
- (c) you have given us written notice of your intention to renew at least 365 days before the end of the then-existing term of this Agreement;
- (d) you are in compliance with all provisions of this Agreement, including all monetary obligations you owe to us or our affiliates, throughout the term of this Agreement;
- (e) you have paid a renewal fee of $1,000 (the "Renewal Fee") to us at least six months before the then-existing term of this Agreement expires;
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate FDD, an affiliate has the right to renew their agreement for one additional 10-year term if they meet several conditions. First, Christies International Real Estate must still be offering licenses or franchises under their marks and system at the time of renewal. Second, the affiliate must meet the then-current standards for new Christies International Real Estate Affiliates, which suggests that the standards for new affiliates could change over time, and existing affiliates need to keep up with these evolving standards to qualify for renewal.
Third, the affiliate must provide written notice of their intent to renew at least 365 days before the end of their current agreement term. This provides Christies International Real Estate with ample time to process the renewal and plan accordingly. Fourth, the affiliate must be in full compliance with all provisions of the existing agreement, including all monetary obligations owed to Christies International Real Estate or its affiliates. This emphasizes the importance of maintaining a good standing relationship throughout the term.
Fifth, the affiliate must pay a renewal fee of $1,000 to Christies International Real Estate at least six months before the current agreement expires. Sixth, the affiliate must sign the then-current broker affiliate license agreement, which may contain terms, conditions, and fees that are materially different from the original agreement. This highlights the risk that renewal terms could be less favorable than the original agreement. Finally, the affiliate and each principal owner must sign a general release, in a form acceptable to Christies International Real Estate, of all claims against Christies International Real Estate and its affiliates, officers, directors, employees, and agents. This is a standard legal practice to prevent future litigation.