Does the Christies International Real Estate non-solicitation covenant apply to any Christies International Real Estate business referred to me by Christies International Real Estate?
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 apply to any Christies International Real Estate business referred to a franchisee by the franchisor. 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 of their business, or any other Christies International Real Estate business referred to them by the franchisor, to any competing business.
This restriction is significant for prospective franchisees because it limits their ability to engage with competing businesses, even those introduced to them through the Christies International Real Estate network. The definition of "competing business" is detailed in Section 6.3(e) of the Franchise Agreement, which franchisees should review carefully to understand the scope of this restriction.
Christies International Real Estate also agrees not to divert any business, account, client, or customer of the franchisee that they gained knowledge of in connection with the agreement, which provides some protection to the franchisee. This mutual non-solicitation agreement aims to protect both the franchisor and franchisee from unfair competition and ensures that the resources and relationships developed within the Christies International Real Estate system remain within the network.