In the general release for Christies International Real Estate, what is the meaning of the term 'Effective Date'?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
You must complete the development and commence operations of the Business within 120 days of the Effective Date.
You shall have 90 days from the Effective Date of this Agreement to install all outdoor and indoor signs with your Business name utilizing the Marks.
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.
As of the Effective Date, we have not established an Advertising Fund, and we do not collect the Advertising Fund Fee.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate FDD, the term 'Effective Date' marks a significant point in time that triggers several obligations and timelines for the franchisee. While the general release itself does not define the term, other sections of the FDD provide context.
Specifically, franchisees must commence business operations within 120 days of the Effective Date. Additionally, franchisees have 90 days from the Effective Date to install all required outdoor and indoor signs displaying their business name and utilizing the Christies International Real Estate Marks.
Furthermore, if a franchisee is converting an existing brokerage, they are not required to pay royalty fees on real estate transactions that are already under contract at the time of the Effective Date, but close after this date. However, royalty fees are applicable to transactions under contract during the agreement term that close after the agreement's expiration, termination, or transfer. The franchisor may implement, begin collecting, and increase the Advertising Fund Fee at any time upon written notice to you as of the Effective Date.