Does the non-compete covenant in the Christies International Real Estate agreement survive the termination of the agreement?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
The covenants stated in this Section will survive the termination or expiration of this Agreement.
- **13.4.
Waiver of Bond.** If we bring suit to enforce this Agreement by injunctive relief, you agree that no bond or other security is necessary and you hereby waive any requirement that we post bond to obtain a temporary, preliminary, or permanent injunction to enforce the duties set forth in this Agreement.
- **13.5.
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 covenants outlined in Section 13 of the agreement, which include non-solicitation and non-compete provisions, do indeed survive the termination or expiration of the agreement. This means that even after the franchise agreement ends, the franchisee is still bound by certain restrictions.
Specifically, Section 13.1 states that for a period of 1 year after the agreement's expiration or termination, the franchisee, principal owners, and responsible broker cannot directly or indirectly divert or attempt to divert any Christies International Real Estate business, account, or customer to a competing business. This restriction applies to any business referred to the franchisee by Christies International Real Estate or the System.
Furthermore, Section 13.3 emphasizes that damages alone may not adequately compensate Christies International Real Estate for violations of these covenants, and the company is entitled to injunctive relief to prevent irreparable harm. This highlights the importance Christies International Real Estate places on these non-compete and non-solicitation agreements and their willingness to take legal action to enforce them, even after the franchise agreement has ended.