What is the Christies International Real Estate franchisee acknowledging about being bound by the agreement?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
| In consideration of the execution of the CHRISTIE'S INTERNATIONAL REAL ESTATE Broker |
|---|
| Affiliate License Agreement dated (the "Agreement") by Christie's |
| International Real Estate, LLC (the "Company," "we" or "us"), each of the undersigned (a "Guarantor") |
| personally and unconditionally guarantees to us, and our successors and assigns, for the term of the |
| Agreement and thereafter as provided in the Agreement that (the |
| "Affiliate" or "you") will timely pay and perform each and every undertaking, obligation, agreement and |
| covenant stated in the Agreement; and agrees to be personally bound by, and personally liable for the breach |
| of, each and every provision in the Agreement. All capitalized terms contained herein and not defined |
| herein will have the same meaning as provided in the Agreement. |
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate Franchise Disclosure Document, the guarantor is acknowledging their personal guarantee to Christies International Real Estate, LLC. The guarantor is guaranteeing that the affiliate will timely pay and perform every undertaking, obligation, agreement, and covenant stated in the agreement.
Furthermore, the guarantor agrees to be personally bound by, and personally liable for the breach of, each and every provision in the agreement. This means the guarantor is taking on a significant responsibility, ensuring the franchisee adheres to all terms.
This arrangement provides Christies International Real Estate with an additional layer of security, as they can pursue the guarantor's personal assets if the franchisee fails to meet their obligations. This is a common practice in franchising, especially when dealing with new or smaller business entities, as it mitigates the franchisor's risk.