What is the Christies International Real Estate franchisee representing regarding their agreement to be bound by the Christies International Real Estate 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 franchisee is agreeing to be personally bound by and personally liable for any breaches of the agreement. Specifically, each guarantor personally and unconditionally guarantees to Christies International Real Estate that the affiliate will timely pay and perform each undertaking, obligation, agreement, and covenant stated in the agreement for the term of the agreement.
This means that the franchisor, Christies International Real Estate, can seek recourse directly from the franchisee (referred to as the 'Affiliate' in the quoted text) if the business fails to meet its financial or operational obligations as outlined in the franchise agreement. This personal guarantee extends to all aspects of the agreement, making the franchisee personally liable for any shortcomings or failures of the business to adhere to the terms of the agreement.
This is a significant commitment for the franchisee, as it puts their personal assets at risk should the franchise business encounter difficulties. It's a common practice in franchising to have personal guarantees, especially with newer or smaller franchisees, as it provides the franchisor with an additional layer of security and assurance that the franchisee is fully invested in the success of the business. Prospective franchisees should carefully consider the implications of this personal guarantee and ensure they fully understand the risks involved before signing the franchise agreement.