Does the Christies International Real Estate non-solicitation covenant apply to attempts to divert any account?
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 does address attempts to divert accounts. Specifically, during the term of the Franchise Agreement and for one year after its expiration or termination, the franchisee, each Principal Owner, and the Responsible Broker are prohibited from directly or indirectly diverting or attempting to divert any Christies International Real Estate business, account, or customer. This includes business from the franchise itself or any other Christies International Real Estate business referred by the franchisor or the System to any competing business.
This restriction is designed to protect Christies International Real Estate's business relationships and goodwill. The non-solicitation clause prevents franchisees from leveraging their access to the Christies International Real Estate network and client base to benefit a competing business, either during the franchise term or immediately afterward. The clause specifically applies not only to diverting existing business but also to attempting to do so, indicating a proactive stance against potential conflicts of interest.
Christies International Real Estate also agrees not to divert or attempt to divert any business, account, client, or customer of the franchisee that they gained knowledge of in connection with the Franchise Agreement during the term of the agreement, and for a period of 1 year after its expiration or termination. This creates a reciprocal obligation, preventing the franchisor from unfairly taking the franchisee's established relationships. This mutual protection is a fairly common practice in franchising, aiming to balance the interests of both parties and maintain the integrity of the franchise system.