What happens if a Christies International Real Estate franchisee is not in compliance with the agreement?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
If your properties listed in the Other Area exceeds 5% of your inventory and, upon notice from us, you do not cease such listings promptly, you will be in default, and we can terminate the Agreement.
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.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, several consequences can arise if a franchisee fails to comply with the franchise agreement. One specific instance of non-compliance is if a franchisee lists properties for sale in an area where another franchisee has protected rights (an "Other Area") and exceeds 5% of their total inventory in that area. If Christies International Real Estate notifies the franchisee of this issue, and the franchisee does not promptly cease these listings, it constitutes a default, and Christies International Real Estate has the right to terminate the agreement.
Christies International Real Estate also requires franchisees to operate their business in full compliance with all applicable laws, ordinances, and regulations, including securing and maintaining all required licenses, permits, and certifications. Franchisees must also ensure that their Responsible Broker and all other employees and agents maintain all legally required licenses, permits, and certifications. Furthermore, franchisees are obligated to comply with all laws and regulations related to privacy and data protection, including adherence to any privacy policies or data breach response policies established by Christies International Real Estate. Failure to comply with these legal and regulatory requirements could lead to penalties, legal action, and potential termination of the franchise agreement.
In addition to legal and territorial compliance, Christies International Real Estate franchisees must adhere to certain operational and notification requirements. Franchisees are required to notify Christies International Real Estate in writing within 24 hours of any action, suit, proceeding, or investigation that may adversely affect their operation or financial condition. They must also immediately report any suspected data breach. 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. These provisions aim to protect the integrity and reputation of the Christies International Real Estate brand and network.