Does the Christies International Real Estate non-solicitation covenant apply to the System?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
ion, proceeding, or dispute that could directly or indirectly affect the Indemnified Parties, the Indemnified Parties have the right, but not the obligation, to: (i) choose counsel; (ii) direct and control the handling of the matter; (iii) settle any claim against the Indemnified Parties; and (iv) seek reimbursement from you pursuant to the terms of this paragraph. This Section will survive the expiration or termination of this Agreement and applies to Indemnification Claims even if they exceed the limits of your insurance coverage.
13. COVENANTS
- 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.
- 13.2. Covenant Not to Compete During Term.
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 the System. During the term of the Broker Affiliate License 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 of the Business or any other Christies International Real Estate business referred to them by the franchisor, or the System to any competing business. This includes competing businesses as defined in Section 6.3(e) of the agreement.
Similarly, Christies International Real Estate is also bound by a non-solicitation covenant. During the term of the Agreement and for one year after its expiration or termination, 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.
Christies International Real Estate emphasizes the importance of these covenants by stating that damages alone may not adequately compensate them if there is a violation. They assert that injunctive relief is essential to prevent irreparable harm. Consequently, Christies International Real Estate is entitled to injunctive relief without needing to post a bond or security if the franchisee, Principal Owners, their spouses or children, or the Responsible Broker violate any covenant within this section. These covenants remain in effect even after the termination or expiration of the Broker Affiliate License Agreement.