factual

Does the non-solicitation clause in the Christies International Real Estate agreement apply to the Responsible Broker?

Christies_International_Real_Estate Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 13.1. Non-Solicitation of Customers. You, each Principal Owner, and the Responsible Broker, will not, during the term of this Agreement, and for a period of 1 year after its expiration or termination, directly or indirectly, divert or attempt to divert any CHRISTIE'S INTERNATIONAL REAL ESTATE business, account or customer of the Business or any other CHRISTIE'S INTERNATIONAL REAL ESTATE business referred to you by us, or the System to any competing business including, but not limited to, the competing businesses set forth in Section 6.3(e). We will not during the term of this Agreement, and for a period of 1 year after its expiration or termination, divert or attempt to divert any business, account, client, or customer of yours that we gained knowledge of in connection with this Agreement.

Source: Item 23 — RECEIPT (FDD pages 54–177)

What This Means (2025 FDD)

According to Christies International Real Estate's 2025 Franchise Disclosure Document, the non-solicitation clause does indeed apply to the Responsible Broker. During the term of the agreement and for one year after its expiration or termination, the Responsible Broker is prohibited from directly or indirectly diverting or attempting to divert any Christies International Real Estate business, account, or customer to a competing business. This includes business from the franchise itself or any business referred by Christies International Real Estate.

This restriction is significant for the Responsible Broker, as it limits their ability to engage with competing businesses both during and for a year after the franchise agreement. The Responsible Broker must avoid any actions that could be seen as soliciting Christies International Real Estate's clients or business for a competitor. This clause aims to protect Christies International Real Estate's business relationships and customer base.

The non-solicitation clause is a common element in franchise agreements across various industries. It is designed to protect the franchisor's investment in its brand and customer relationships. For a Christies International Real Estate franchisee, understanding and adhering to this clause is crucial to avoid potential legal issues and maintain a good relationship with the franchisor. The franchisee should ensure that the Responsible Broker is fully aware of these obligations and the potential consequences of violating them.

Christies International Real Estate also agrees not to divert any business, account, client, or customer of the franchisee that they gained knowledge of in connection with the agreement for a period of one year after the expiration or termination of the agreement. This provides some protection to the franchisee as well.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.