Is a Christies International Real Estate franchisee free to set their own prices?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that by executing this Agreement you are agreeing to establish and operate an independent CHRISTIE'S INTERNATIONAL REAL ESTATE business, the success of which depends on, among other things, your individual ability to operate your business, attract and retain qualified agents and other personnel, and otherwise operate all phases of an independent business over which you will have substantial control.
As an independent business owner, you agree that: (i) the relationship created by this Agreement is not a relationship between principal and agent, or that it is a fiduciary relationship; (ii) you are not our employee and will not earn any wages, nor be eligible for or receive any of the other benefits normally provided to employees, but rather your income will solely be the profits you earn from the operation of your Business; (iii) we are not the employer or coemployer of any employee that you hire; (iv) except as set forth herein, all management, personnel, and training requirements are at your discretion and are your responsibility; (v) you are responsible for ensuring that your Business operates in accordance with the law of the state, county, city, and town in which you operate; (vi) you alone are permitted to contract with your customers and you are required to sign all contracts and agreements, including purchase agreements, using your independent business name; (vii) you are free to set the prices you charge your customers, so long as those charges comply with any and all
mandatory policies we prescribe in the Operations Manual relating to maximum or minimum charges; and (viii) we shall not be liable for damages to any person or property arising directly or indirectly out of your operation of your Business nor shall we be liable for any taxes, assessments, fines or penalties levied upon you or your Business arising out of your Business.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, franchisees have the freedom to set their own prices for the services they offer. However, this freedom is subject to certain limitations. Christies International Real Estate retains the right to implement mandatory policies in the Operations Manual that relate to maximum or minimum charges. This means that while franchisees can generally determine their pricing, they must adhere to any pricing guidelines established by the franchisor.
This policy is fairly typical in franchising, where franchisors often set some pricing parameters to ensure brand consistency and competitiveness across different locations. The franchisee's ability to control pricing is an important aspect of operating as an independent business owner within the Christies International Real Estate franchise system. Franchisees should carefully review the Operations Manual and any updates to understand the scope and nature of any mandatory pricing policies.
Prospective franchisees should inquire about the specific pricing policies in the Operations Manual and any potential changes to these policies. Understanding these pricing constraints is crucial for developing a sound business plan and ensuring profitability. Franchisees need to balance their pricing strategies with the franchisor's guidelines to maintain brand standards while maximizing their revenue potential.