If Christies International Real Estate requires the use of Konverse, who receives the fees?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
ly approved supplier for the proprietary software.
In addition, in the future we may require that you use the communications technology program, Konverse, and pay their then-current fees.
Since technology, particularly in the real estate brokerage business is changing, we reserve the right to require businesses operating under the System and Marks, including your Business, to change technology systems, or implement new or changed technologies, and you would be required to pay the initial, conversion, and ongoing fees and costs associated with those changes, which payments may be to us or to third parties.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, if the company requires franchisees to use the Konverse communications technology program, franchisees will be responsible for paying the then-current fees. The payments for these fees may be directed either to Christies International Real Estate itself or to third parties. This depends on the specific arrangements Christies International Real Estate establishes for the technology.
Notably, one or more officers of Christies International Real Estate have an ownership interest in Konverse. This creates a potential conflict of interest, as the decision to mandate Konverse could benefit these officers financially. While the FDD states that franchisees may be required to implement new technologies and pay associated fees to Christies International Real Estate or third parties, the pre-existing ownership stake in Konverse is a noteworthy detail for prospective franchisees to consider.
It is important for potential Christies International Real Estate franchisees to clarify with the franchisor the specific financial arrangements regarding Konverse. Understanding where the fees are directed and the extent of the officers' ownership stake in Konverse is crucial for making an informed investment decision. This transparency will help franchisees assess whether the technology mandate is primarily driven by the best interests of the franchise network or by the personal financial interests of the company's officers.