Does the Christies International Real Estate non-compete agreement apply anywhere in the United States?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.2. Covenant Not to Compete During Term. You and each Principal Owner will not, during the term of this Agreement, directly, or as an employee, agent, consultant, partner, officer, director or shareholder of any other person, firm, entity, partnership or corporation, own, operate, lease, franchise, conduct, engage in, be connected with, have any interest in or assist any person or entity engaged in any business that offers for sale real estate brokerage services, or any other related business that is similar to, offers the same or similar products or services to, or is otherwise competitive with, the Business, anywhere in the United States, including, but not limited to, those competing businesses set forth in Section 6.3(e), except the ownership of securities listed on a stock exchange or traded on the over-the-counter market that represent 1% or less of that class of securities. For clarification and avoidance of doubt, the above restriction regarding the operation of competing businesses applies to any separate real estate brokerage business under any brand, or Protected Territories or Broker Affiliate License Agreements or other territories, franchises, licenses or other businesses you, your affiliates or Principal Owner have with us or any of our affiliates, including following the termination or expiration of any such rights.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate Franchise Disclosure Document, the non-compete agreement extends throughout the United States. During the term of the agreement, the franchisee and each Principal Owner are prohibited from engaging in any business that offers real estate brokerage services or related services that compete with Christies International Real Estate anywhere in the United States. This includes being involved as an employee, agent, consultant, partner, officer, director, or shareholder of any competing entity. The only exception is owning securities that represent 1% or less of a publicly traded company.
This restriction applies to any separate real estate brokerage business, regardless of the brand or territory, that the franchisee or their affiliates have with Christies International Real Estate, including after the termination or expiration of any such rights. However, franchisees and principal owners may own other real estate-related businesses that do not offer residential real estate brokerage services that are marketed as "luxury" and that do not compete with the Christies International Real Estate business in the luxury segment of the market. These businesses must be owned and operated under a separate legal entity and represented to the public as a different entity from the Christies International Real Estate affiliate.
After the agreement expires or terminates, the franchisee, each Principal Owner, and the Responsible Broker are restricted from soliciting Christies International Real Estate customers for one year. They cannot divert or attempt to divert any business, account, or customer of Christies International Real Estate to any competing business. Similarly, Christies International Real Estate is restricted from diverting any of the franchisee's business, accounts, clients, or customers that they gained knowledge of in connection with the agreement for one year after the agreement expires or terminates.
Christies International Real Estate emphasizes the importance of these covenants, stating that damages alone may not adequately compensate them for violations. They are entitled to injunctive relief, without posting bond or security, to prevent irreparable harm if the franchisee, Principal Owners, or Responsible Broker violate these covenants. These non-compete and non-solicitation clauses are designed to protect Christies International Real Estate's business interests and customer relationships.