factual

What is a Christies International Real Estate franchisee required to do to uphold the brand image and goodwill?

Christies_International_Real_Estate Franchise · 2025 FDD

Answer from 2025 FDD Document

erstand and agree that you will be solely responsible for any initial and ongoing fees regarding your Business' MLS feed. Such fees are based on local MLS rules.

  • 5.13. Brand Image and Remodeling. You agree to keep your Main Office and Additional Offices (if any) clean and well maintained in order to uphold the image and goodwill of our brand and System, in accordance with the Operations Manual including, but not limited to, the Brand Guidelines.
  • 5.14. Compliance with Laws and Good Business Practices. You must secure and maintain in force all required licenses, permits and certificates relating to the operation of the Business and must operate the Business in full compliance with all applicable laws, ordinances and regulations. You must ensure the Responsible Broker and all other employees and agents obtain and maintain, for the duration they are affiliated with the Business, all licenses, permits, certifications required by applicable law. You must comply with all laws and regulations relating to privacy and data protection and must comply with any privacy policies or data protection and breach response policies we periodically may establish. You must notify us in writing within 24 hours of the commencement of any action, suit, proceeding or investigation, and of the issuance of any order, injunction, or award of decree by any court, agency, or other governmental instrumentality, that may adversely affect the operation or financial condition of you or the Business. You must notify us immediately of any suspected data breach at or in connection with the Business. You will not conduct any business or advertising practice which injures other CHRISTIE'S INTERNATIONAL REAL ESTATE businesses, the System or the goodwill associated with the Marks.
  • 5.15. Conversion Warranty. If you are converting an existing brokerage, you will not be required to pay to us Royalty Fees on real estate transactions that are under contract at the time of the Effective Date but close after the Effective Date of this Agreement. However, you acknowledge and agree to pay to us Royalty Fees on real estate transactions that are under contract during the term of this Agreement but close after expiration, termination, or transfer of this Agreement.
  • 5.16. Insurance. You agree to purchase and maintain in force, at your expense, all of the insurance coverage we require in the types and amounts described in the Operations Manual. All insurance policies will: (1) be issued by an insurance carrier(s) acceptable to us; (2) will name us and our affiliates as an additional named insureds; (3) contain a waiver of the insurance company's right of subrogation against us; (4) contain the minimum insurance coverage that we designate in the Operations Manual for each CHRISTIE'S INTERNATIONAL REAL ESTATE business that you operate, including this Business; and (5) provide that we will receive 30 days' prior written notice of any material change in or termination, expiration or cancellation of any policy. We periodically may, with prior written notice to you, increase the minimum liability protection requirements, and require different or additional kinds of insurance to reflect inflation or changes in standards of liability. If you at any time fail to maintain in effect any insurance coverage we require, or to furnish satisfactory evidence thereof, we, at our option, may obtain insurance coverage for you. You agree to promptly sign any applications or other forms or instruments required to obtain any insurance and pay to us, on demand, any costs and premiums we incur. You will provide us with copies of the certificate of insurance, insurance policy endorsements or other evidence of compliance with these requirements at least 2 weeks before you take possession and commence development of the Business premises, and at such other times as we may require. In addition, you will provide to us a copy of the evidence of the renewal or extension of each insurance policy in a form we require.

5.17. Client Referrals. You are required to comply with the programs, policies, and procedures that we designate regarding client referrals, which may be modified, suspended, or augmented from time to time at our option. If we do not have any referral programs, policies, or procedures in place at the time that you communicate with a client referral, and except as otherwise permitted by us, you are required to direct any client referrals to other Affiliates. If, at the time during this Agreement, you are a member of an affiliation approved by us and are required by said affiliation to comply with its programs, policies, and procedures, then you may continue to abide by those approved membership agreements. As of the date of this Agreement, the third-party affiliations that you are currently a member of are listed on Exhibit 6.

Source: Item 23 — RECEIPT (FDD pages 54–177)

What This Means (2025 FDD)

According to the 2025 Christies International Real Estate FDD, franchisees must adhere to several requirements to maintain the brand's image and goodwill. Franchisees must operate under the approved trade name, "CHRISTIE'S INTERNATIONAL REAL ESTATE" with an identifying suffix or prefix, and display it according to the Operations Manual and Brand Guidelines. They cannot change this trade name without prior written consent from Christies International Real Estate. Franchisees also grant Christies International Real Estate a perpetual, non-exclusive license to use their name, likeness, and those of their employees and agents for advertising and other lawful purposes.

To further protect the brand, Christies International Real Estate franchisees must secure and maintain all required licenses, permits, and certifications, and operate their business in compliance with all applicable laws and regulations, including those related to privacy and data protection. They must also notify Christies International Real Estate of any legal actions or suspected data breaches that could affect the business. Franchisees are prohibited from engaging in any business or advertising practices that could harm other Christies International Real Estate businesses, the overall system, or the goodwill associated with the brand's trademarks.

Additionally, franchisees must adhere to specific trademark usage guidelines, including not representing ownership of the marks, using the "CHRISTIE'S" mark only in the phrase "CHRISTIE'S INTERNATIONAL REAL ESTATE," and using the correct font. They must also position the marks as a leading luxury brand and avoid associating other trademarks with more luxurious services or properties. Franchisees are expected to market, sell, or lease only "luxury real estate" and maintain an average selling price as designated by Christies International Real Estate, with the understanding that Christies International Real Estate has the right to require the removal of such designations at their discretion. Franchisees must also install exterior signs displaying their Trade Name on their Main Office and any Additional Offices within ninety (90) days from the Effective Date of the Agreement, conforming to the Brand Guidelines.

These requirements ensure that all Christies International Real Estate franchisees maintain a consistent and high-quality brand image, which is crucial in the luxury real estate market. By adhering to these guidelines, franchisees contribute to the overall goodwill and reputation of the Christies International Real Estate brand, protecting its value and appeal to clients.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.