Does the non-solicitation 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.
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 extends beyond the agreement's term. Specifically, the agreement states that the covenants outlined in Section 13, which includes the non-solicitation agreement, will remain in effect even after the termination or expiration of the franchise agreement.
This means that even after a Christies International Real Estate franchise agreement ends, the franchisee, principal owners, and responsible broker are still obligated to not solicit customers for a specified period.
This survival clause is a standard practice in franchising to protect the franchisor's customer base and proprietary information. Franchisees should be aware of the duration and scope of these post-termination obligations, as violating them could lead to legal action, as Christies International Real Estate also states that damages alone may not be adequate compensation for covenant violations and that injunctive relief may be necessary.