What is the effect of compliance with the Trademark License Agreement on a Christies International Real Estate franchisee?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to the following additional obligations, pursuant to our obligations under the Trademark License Agreement:
(a) You shall not represent that you own any of the Marks.
(b) You shall not use any Marks that consist of or incorporate "CHRISTIE'S" in any manner other than in the phrase "CHRISTIE'S INTERNATIONAL REAL ESTATE."
(c) You shall not use the font of the "CHRISTIE'S" Marks for any words other than "CHRISTIE'S."
(d) You must use the Marks in combination with the marks set forth in Section 7 of Exhibit 1 of this Agreement, which may be modified from time to time in writing, with our prior written consent.
(e) You shall market, hold out and otherwise position the Marks as a leading luxury brand.
You shall not market, hold out or otherwise position any other trademarks, trade names, service marks, domain names, logos or other commercial symbols as being associated with more luxurious real estate brokerage services or more luxurious real estate properties than those offered, marketed or sold under the Marks.
(f) You agree that you are neither directly nor indirectly controlled by Sotheby's Inc., Phillips Auctioneers Limited, Beijing Poly International Auction Co. Ltd., China Guardian Auctions Co. Ltd., or their successors (including, for the avoidance of doubt, Realogy Holdings Corp. and its affiliates, for so long as it is licensed to use the Sotheby's Marks), or any other competitor that we may designate from time to time.
(g) Your rights under this Agreement are contingent on you marketing, selling, or leasing only "luxury real estate" and maintaining an average selling price for properties that we designate from time to time, as further described in the Operations Manual, which definitions of, and formulas for calculating, "luxury real estate" are prescribed by IP Owner in the Trademark License Agreement.
You may designate properties as "luxury real estate" based on your market and relevant market and competitive issues; provided however, that we have the right to require you to remove such designations in our sole discretion.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate Franchise Disclosure Document, franchisees must adhere to specific obligations related to the Trademark License Agreement. These obligations dictate how franchisees can represent and use the Christies International Real Estate marks. Franchisees cannot claim ownership of the marks, use them in any phrase other than "CHRISTIE'S INTERNATIONAL REAL ESTATE," or alter the font of the "CHRISTIE'S" mark for other words. They must also use the marks in combination with other marks as specified in the agreement and market the brand as a leading luxury brand. These stipulations ensure brand consistency and prevent misuse of the trademarks.
Furthermore, Christies International Real Estate franchisees must not position other trademarks as being associated with more luxurious real estate services or properties than those offered under the Christies International Real Estate marks. Franchisees must also confirm they are not directly or indirectly controlled by specified competitors like Sotheby's Inc. and its affiliates. 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, aligning with the IP Owner's definitions in the Trademark License Agreement. While franchisees can designate properties as "luxury real estate" based on their market, Christies International Real Estate retains the right to require the removal of such designations.
In practical terms, these requirements mean a Christies International Real Estate franchisee must be meticulous in their marketing and branding efforts to ensure compliance. They must stay updated on any modifications to the marks' usage guidelines and the definition of "luxury real estate." Failure to comply with these obligations could lead to a breach of the franchise agreement and potential termination. These obligations are designed to protect the brand's reputation and ensure that all franchisees maintain a consistent and high-end image, which is crucial in the luxury real estate market.