Does the non-solicitation covenant in the Christies International Real Estate agreement apply to the Responsible Broker?
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 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 any competing business. This includes business referred by Christies International Real Estate or the System.
This restriction is significant for the Responsible Broker, as it limits their ability to engage with competing businesses both during the franchise term and for a year afterward. The Responsible Broker is defined as the Principal Owner approved by Christies International Real Estate to oversee business operations and hold the necessary real estate licenses. This individual represents the franchisee in interactions with Christies International Real Estate and must complete initial and follow-up training programs.
The non-solicitation clause aims to protect Christies International Real Estate's business relationships and customer base. The definition of "System" includes luxury real estate brokerage products and services, approved products and services, equipment, confidential information, marketing techniques, operating procedures, quality standards, business methods, and the Operations Manual. This broad definition means the Responsible Broker must avoid diverting business related to any aspect of the Christies International Real Estate system.
Christies International Real Estate also has obligations, as they will not divert or attempt to divert any business, account, client, or customer of the franchisee that they gained knowledge of in connection with the Agreement during the term of the Agreement, and for a period of 1 year after its expiration or termination. This mutual restriction ensures that both parties are committed to maintaining the integrity of the business relationships established during the franchise agreement.