Must a Christies International Real Estate franchisee maintain an average selling price for properties?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
Further, you must only sell "luxury" real estate and maintain 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. The Trademark License Agreement is confidential between us and IP Owner.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 43)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, franchisees must sell "luxury" real estate and maintain an average selling price for properties. The specific average selling price is designated by Christies International Real Estate from time to time. The definitions of "luxury real estate" and the formulas for calculating it are determined by the IP Owner in the Trademark License Agreement. The Trademark License Agreement itself is confidential between Christies International Real Estate and the IP Owner.
This requirement means that a Christies International Real Estate franchisee cannot list properties below a certain price point, as defined by the franchisor. This ensures that the brand maintains its image as a luxury real estate brokerage. The franchisee must adhere to the standards set by Christies International Real Estate to maintain the brand's reputation.
Because the specific average selling price and the definition of "luxury real estate" are not detailed in the FDD but are instead found in the confidential Trademark License Agreement and the Operations Manual, a prospective franchisee should discuss these requirements in detail with Christies International Real Estate prior to signing any agreements. Understanding how the average selling price is calculated and what constitutes "luxury real estate" is crucial for assessing the financial viability of the franchise.