What is the 'License Agreement' date referring to in the Christies International Real Estate general release?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS BROKER AFFILIATE LICENSE AGREEMENT (the "Broker Affiliate License Agreement" or "Agreement") is made and entered into this day of, 20 (the "Effective Date"), between Christie's International Real Estate, LLC, a Delaware limited liability company, with a principal place of business at 806 N. Peoria Street, Chicago, IL 60642 ("we," "us" or "our"), and , a [resident of / corporation organized in / limited liability company organized in] the state of ("you" or "your").
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate FDD, the 'Effective Date' in the Broker Affiliate License Agreement refers to the date when the agreement is made and entered into between Christies International Real Estate, LLC and the affiliate. This date marks the commencement of the ten-year term for the agreement, as detailed in Section 2.1.
This date is significant because it triggers several obligations and rights for both parties. For instance, the affiliate's obligation to pay royalty fees on real estate transactions begins from this date. Conversely, if an existing brokerage is converting to a Christies International Real Estate franchise, they are not required to pay royalty fees on transactions under contract before the Effective Date, even if they close afterward.
Furthermore, the Effective Date is crucial for renewal purposes. To renew the agreement for an additional ten-year term, the franchisee must provide written notice of their intention at least 365 days before the end of the current term. They must also sign Christies International Real Estate's then-current broker Affiliate license agreement, which may contain materially different terms and fees. Understanding the implications tied to the Effective Date is essential for any prospective Christies International Real Estate franchisee.