If I receive an offer to purchase my Christies International Real Estate franchise, what must I do?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, you may retain Confidential Information as needed solely for legal, tax, and insurance purposes, but the information retained will remain subject at all times to the confidentiality restrictions of this Agreement.
- **11.3.
Our Option to Purchase the Business**.
If you were new to the real estate brokerage business before you signed this Agreement and became an Affiliate, and you did not have an existing real estate brokerage business that converted to the CHRISTIE'S INTERNATIONAL REAL ESTATE brand, then if this Agreement expires or is terminated for any reason, we have the option, but not the obligation, upon 60 days' written notice from the date of expiration or termination, to purchase from you all the tangible and intangible assets relating to the Business (excluding any unsalable inventory, cash, short term investments and accounts receivable) (collectively, the "Purchased Assets").
We may assign this option to purchase, and assignment separate and apart from the remainder of this Agreement.
The purchase price for the Business will be the book value of the Purchased Assets; provided that: (a) we may exclude from the Purchased Assets any products or other items that are not in compliance with this Agreement; and (b) we may exclude from fair market value any provision for goodwill or similar value attributable to intangible property (such as the Marks and Confidential Information).
If the parties cannot agree on fair market value within a reasonable time, we may designate an independent appraiser to determine the fair market value of the Purchased Assets.
The determination of such appraiser will be binding on the parties hereto, and the costs of such appraisal will be divided equally between you and us.
The purchase price, as determined above, will be paid in cash at the closing of the purchase, which will occur within a reasonable time, not to exceed 60 days, after the fair market value is determined.
At the closing, you will deliver documents transferring good and merchantable title to the assets purchased, free and clear of all liens, encumbrances and liabilities to us or our designee and such other documents we may reasonably request to permit us to operate the Business without interruption.
We may set off against and reduce the purchase price by all amounts you owe to us or any of our affiliates.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Christies International Real Estate does not explicitly state the procedure a franchisee must follow if they receive an offer to purchase their franchise. The document does outline Christie's International Real Estate's option to purchase the business under certain conditions.
Specifically, if the franchisee was new to the real estate brokerage business before signing the agreement and did not convert an existing real estate brokerage business to the Christies International Real Estate brand, then Christies International Real Estate has the option to purchase the tangible and intangible assets of the business if the agreement expires or is terminated. This is contingent upon providing 60 days' written notice. The purchase excludes unsalable inventory, cash, short-term investments, and accounts receivable. The purchase price will be the book value of the purchased assets, excluding non-compliant products and goodwill related to intangible property.
If the parties cannot agree on the fair market value, an independent appraiser may be designated, with the appraisal costs split equally. The purchase price will be paid in cash within 60 days after the fair market value is determined. At closing, the franchisee must deliver documents transferring good title to the assets, free of liens and liabilities. Christies International Real Estate can also offset any amounts owed to them by the franchisee against the purchase price.
Because the FDD does not detail the process for a franchisee-initiated sale, a prospective franchisee should directly ask Christies International Real Estate about the steps to take if they receive an offer to purchase their franchise, including any required approvals, transfer fees, or other conditions.