What constitutes a valid and legally binding obligation for the Christies International Real Estate franchisee?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
e a licensed CHRISTIE'S INTERNATIONAL REAL ESTATE business using the Marks and System.
- C. We have agreed to grant you the right to develop and operate a licensed CHRISTIE'S INTERNATIONAL REAL ESTATE business subject to the terms and conditions of this Agreement (including all exhibits and related documents) and our Operations Manual.
AGREEMENTS
NOW, THEREFORE, for value received, you and we ("the Parties") agree as follows:
1. GRANT
- 1.1. Grant. Subject to the provisions contained in this Agreement, including all exhibits and related documents, and Operations Manual, we grant you a non-exclusive license to own and operate a CHRISTIE'S INTERNATIONAL REAL ESTATE business (the "Business"). The physical address of your Business ("Main Office") must be located within the Protected Territory and approved by us in writing before you can begin to operate your Business. Your Main Office and the Protected Territory are identified in Exhibit 1 to this Agreement. You may not relocate your Main Office without our prior written consent, as described in Section 5.2 of this Agreement.
- 1.2 Nature of the Protected Territory. Except as described below, and except as modified by Exhibit 1 (if applicable), neither we nor our affiliates will establish and operate, or grant licenses or franchises to others to establish and operate a CHRISTIE'S INTERNATIONAL REAL ESTATE business within the Protected Territory during the term of this Agreement, so long as you are in compliance with this Agreement. The license granted to you under this Agreement is personal in nature and shall only be used from the Main Office and any Additional Office authorized by us. Notwithstanding the preceding sentence, and subject to the terms of this Agreement, you shall have the right to offer and sell real estate brokerage services identified by the Marks through any other channels of distribution, including the Internet but excluding the metaverse. We reserve, maintain, and control all rights with respect to said metaverse. As used herein, "metaverse" means any 3D virtual space powered by technologies – including virtual reality, augmented reality, artificial intelligence, the Internet of Things, and blockchain – that allows people to interact with each other and to have lifelike experiences online.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, several factors create legally binding obligations for the franchisee. The franchise agreement itself, including all exhibits, related documents, and the Operations Manual, outlines the terms under which Christies International Real Estate grants the franchisee a non-exclusive license to operate a business. The franchisee must operate the business from a Main Office located within the Protected Territory, and this location requires written approval from Christies International Real Estate. Relocating the Main Office also necessitates prior written consent from Christies International Real Estate, as detailed in Section 5.2 of the agreement.
The franchisee is obligated to comply with the Trademark License Agreement, which includes restrictions on how the franchisee uses the Christies International Real Estate marks. Specifically, the franchisee cannot represent ownership of the marks, must use the marks only in the phrase "CHRISTIE'S INTERNATIONAL REAL ESTATE," and must use the designated font for "CHRISTIE'S." The franchisee must also market the marks as a leading luxury brand and ensure that no other trademarks are positioned as more luxurious. Furthermore, the franchisee's rights are contingent on marketing, selling, or leasing only "luxury real estate" and maintaining an average selling price as defined in the Operations Manual.
Before commencing operations, the franchisee must obtain written approval from Christies International Real Estate. The franchisee is required to complete development and begin operations within 120 days of the Effective Date of the agreement. Additionally, the franchisee has 90 days from the Effective Date to install all indoor and outdoor signs displaying the business name and marks. Before signing any lease or purchase agreement for the site, the franchisee must provide a copy to Christies International Real Estate and obtain prior written approval. The franchisee is responsible for ensuring the premises comply with all applicable ordinances, building codes, and licensing requirements, as well as obtaining all necessary permits. These stipulations ensure that the franchisee adheres to Christies International Real Estate's standards and legal requirements, thereby maintaining the brand's integrity and reputation.