Does the Christies International Real Estate non-solicitation covenant apply to attempts to divert business?

According to the 2025 Christies International Real Estate Franchise Disclosure Document, the non-solicitation covenant explicitly addresses attempts to divert business. During the term of the agreement and for one year after its expiration or termination, franchisees, principal owners, and responsible brokers are 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 referred to the franchisee by Christies International Real Estate or the System.

This covenant aims to protect Christies International Real Estate's business relationships and customer base. The non-solicitation clause prevents franchisees from leveraging their access to the Christies International Real Estate network and resources to benefit a competing business, either during the franchise term or immediately afterward. The agreement also states that Christies International Real Estate 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.

For a prospective franchisee, this means that upon signing the agreement, they are legally bound not to solicit or divert existing Christies International Real Estate clients to another business. This restriction extends for one year after the franchise agreement ends. Violation of this covenant could result in legal action by Christies International Real Estate to protect its interests. Franchisees should carefully consider this restriction, especially if they have existing relationships or business ventures in the real estate industry, to ensure they can comply with the terms of the franchise agreement.