What is Exhibit 2 in the Christies International Real Estate FDD?

According to the 2025 Christie's International Real Estate FDD, Exhibit 2 is the Automatic Bank Draft Authorization. This exhibit likely contains the form and instructions required for a franchisee to authorize Christie's International Real Estate to automatically debit their bank account for fees, royalties, or other payments due under the franchise agreement.

For a prospective franchisee, understanding the terms of the Automatic Bank Draft Authorization is crucial. It outlines the process by which Christie's International Real Estate will collect payments, including the frequency, amounts, and any conditions for modification or termination of the authorization. Franchisees should carefully review this exhibit to ensure they are comfortable with the payment methods and schedules.

Automatic payment systems are common in franchising for their convenience and efficiency. However, franchisees should be aware of their rights and responsibilities regarding these payments, including procedures for disputing charges or canceling the authorization. Reviewing Exhibit 2 will help a franchisee understand these aspects of the financial relationship with Christie's International Real Estate.