How does Christies International Real Estate define 'Principal Owner'?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
- 21.11. "Principal Owner" means any person or entity who directly or indirectly owns a 5% or greater interest in you.
If any corporation or other entity other than a partnership is a Principal Owner, a Principal Owner also will mean a shareholder or owner of a 5% or greater interest in such corporation or other entity.
If a partnership is a Principal Owner, a Principal Owner also will mean each general partner of such partnership and, if such general partner is an entity, each owner of a 5% or greater interest in such general partner.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, a 'Principal Owner' is defined as any person or entity who directly or indirectly owns a 5% or greater interest in the franchisee's business. This definition extends beyond direct ownership to include scenarios involving corporations and partnerships.
For corporations or entities other than partnerships, a 'Principal Owner' includes any shareholder or owner holding a 5% or greater interest in that corporation or entity. This ensures that significant stakeholders at the corporate level are also considered 'Principal Owners.'
In the case of partnerships, a 'Principal Owner' encompasses each general partner. Furthermore, if a general partner is itself an entity, then any owner with a 5% or greater interest in that general partner is also classified as a 'Principal Owner'. This multi-layered definition is important because it captures individuals with substantial influence or control over the franchise, regardless of the specific legal structure of ownership. This broad definition likely allows Christies International Real Estate to properly monitor and manage who has a vested interest in their franchises.