What happens to the goodwill generated by a Christies International Real Estate franchisee's use of the Marks?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
expressly authorized such use in writing. You agree to display the Marks prominently and in the manner we direct on all signs and forms. Subject to our rights described in this Agreement, you agree to obtain fictitious or assumed name registrations as may be required under applicable law.
- 6.3. Additional Limitations on Your Use of the Marks Pursuant to the Trademark License Agreement. Our and your use of the Marks is subject to the Trademark License Agreement. You agree to the following additional obligations, pursuant to our obligations under the Trademark License Agreement:
- (a) You shall not represent that you own any of the Marks.
- (b) You shall not use any Marks that consist of or incorporate "CHRISTIE'S" in any manner other than in the phrase "CHRISTIE'S INTERNATIONAL REAL ESTATE."
- (c) You shall not use the font of the "CHRISTIE'S" Marks for any words other than "CHRISTIE'S."
- (d) You must use the Marks in combination with the marks set forth in Section 7 of Exhibit 1 of this Agreement, which may be modified from time to time in writing, with our prior written consent.
- (e) You shall market, hold out and otherwise position the Marks as a leading luxury brand. You shall not market, hold out or otherwise position any other trademarks, trade names, service marks, domain names, logos or other commercial symbols as being associated with more luxurious real estate brokerage services or more luxurious real estate properties than those offered, marketed or sold under the Marks.
- (f) You agree that you are neither directly nor indirectly controlled by Sotheby's Inc., Phillips Auctioneers Limited, Beijing Poly International Auction Co. Ltd., China Guardian Auctions Co. Ltd., or their successors (including, for the avoidance of doubt, Realogy Holdings Corp. and its affiliates, for so long as it is licensed to use the Sotheby's Marks), or any other competitor that we may designate from time to time.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate FDD, the franchisee does not gain ownership of any goodwill associated with the CHRISTIE'S INTERNATIONAL REAL ESTATE Marks. The franchise agreement specifies that the franchisee cannot represent that they own any of the Marks. The franchisee is only permitted to use the Marks as specifically outlined in the franchise agreement, and must market the Marks as a leading luxury brand. They are not allowed to position any other trademarks as being associated with more luxurious services or properties than those offered under the Christies International Real Estate Marks.
Upon termination or expiration of the franchise agreement, the franchisee must discontinue all use of the CHRISTIE'S INTERNATIONAL REAL ESTATE Marks. This includes removing the Marks from all social media accounts and canceling any fictitious names or trade names filed for the use of the Marks. Additionally, the franchisee must transfer all internet domain names that include any of the Marks to IP Owner, or a designee.
These stipulations are typical in franchising, as the brand's trademarks and associated goodwill are considered the intellectual property of the franchisor. This ensures consistent brand representation and protects the franchisor's brand equity. Prospective Christies International Real Estate franchisees should understand that the goodwill generated through their efforts ultimately benefits the Christies International Real Estate brand, not the individual franchise owner, and that they must adhere to strict brand guidelines and cease all use of the Marks upon termination of the agreement.