Does the non-solicitation covenant in the Christies International Real Estate agreement apply to Christies International Real Estate?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer 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 the 2025 Christies International Real Estate Franchise Disclosure Document, the non-solicitation covenant applies to Christies International Real Estate. During the term of the agreement, and for one year after expiration or termination, Christies International Real Estate agrees not to divert or attempt to divert any of the franchisee's business, account, client, or customer that they gained knowledge of in connection with the agreement.
This clause protects the franchisee from Christies International Real Estate potentially poaching their clients or business relationships developed during the franchise term. It ensures that the franchisor cannot directly compete for the franchisee's established customer base within a year after the agreement ends.
This type of clause is relatively standard in franchising to protect franchisees who invest time and resources in building a business under the franchisor's brand. It aims to create a fair balance where both parties are restricted from unfairly leveraging the relationship after the agreement concludes.