factual

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

Christies_International_Real_Estate Franchise · 2025 FDD

Answer 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 explicitly addresses attempts to divert customers. 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 covenant aims to protect Christies International Real Estate's customer base and business interests by preventing franchisees from leveraging their access to clients and business opportunities to benefit competing ventures. The non-solicitation clause extends to any competing business, including those listed in Section 6.3(e) of the agreement, indicating a broad scope of prohibited activities.

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 mutual obligation ensures a fair balance, preventing the franchisor from exploiting the franchisee's established relationships for their own gain. This reciprocal arrangement is not always standard in franchising, so it represents a potentially significant benefit for Christies International Real Estate franchisees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.