For Christies International Real Estate, what is the 'Guarantee, Indemnification, and Acknowledgment' 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 'Guarantee, Indemnification, and Acknowledgment' agreement involves a personal guarantee from the franchisee (referred to as the 'Affiliate') and any guarantors to Christies International Real Estate. This agreement ensures that the Affiliate will fulfill all obligations outlined in the Broker Affiliate License Agreement.
Specifically, the guarantor(s) personally and unconditionally guarantee to Christies International Real Estate that the Affiliate will timely pay and perform every undertaking, obligation, agreement, and covenant stated in the Agreement. This means the guarantor(s) agree to be personally bound by and liable for any breaches of the agreement by the Affiliate. The agreement extends for the term of the Broker Affiliate License Agreement and continues thereafter as provided in the agreement.
In essence, this clause holds the guarantor(s) personally responsible for the financial and operational performance of the Christies International Real Estate franchise. This is a common practice in franchising, as it provides the franchisor with an additional layer of security and assurance that the franchisee will adhere to the terms of the agreement. Prospective franchisees should carefully review this section and understand the full extent of their obligations and potential liabilities, as well as those of any guarantors, before signing the agreement.