Must Christies International Real Estate franchisees maintain an average selling price for properties?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
For instance, you are not permitted to use any Marks that consist of or incorporate "CHRISTIE'S" in any manner other than in the phrase "CHRISTIE'S INTERNATIONAL REAL ESTATE." In addition, you are required to market, hold out and otherwise position the Marks as a leading luxury brand, and you must not market, hold out or otherwise position any other trademarks or other commercial symbols as being associated with additional or more luxury real estate brokerage services,or additional or more luxury real estate properties than those offered, marketed or sold under the Marks. You must use the Marks in combination with your marks, which will be set forth in Section 7 of Exhibit 1 of the License Agreement. 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. You may designate properties as "luxury real estate" based on your market and relevant market and competitive issues; provided however, that we have the right to require you to remove such designations in our sole discretion.
Source: Item 13 — TRADEMARKS (FDD pages 38–40)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate 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, with further details described in the Operations Manual. The definition of "luxury real estate" and the formulas for calculating it are prescribed by the IP Owner in the Trademark License Agreement.
Franchisees can initially designate properties as "luxury real estate" based on their market, relevant market conditions, and competitive issues. However, Christies International Real Estate retains the right to require franchisees to remove such designations at their sole discretion. This means that while franchisees have some initial flexibility in defining what constitutes luxury real estate in their area, Christies International Real Estate ultimately controls this designation.
This requirement ensures that all Christies International Real Estate franchises maintain a consistent brand image and focus on the luxury real estate market. Prospective franchisees should carefully review the Operations Manual and Trademark License Agreement to understand the specific criteria for "luxury real estate" and how the average selling price is calculated. It is also important to understand the circumstances under which Christies International Real Estate might require a franchisee to remove the "luxury" designation from a property.