factual

Is Christies International Real Estate obligated to provide an explanation of the approval criteria to franchisees?

Christies_International_Real_Estate Franchise · 2025 FDD

Answer from 2025 FDD Document

We consider a variety of factors when considering which suppliers we will deem as approved suppliers, such as price, service, quality, warranty, delivery terms, ability to provide products and services that meet our specifications, responsiveness, and other commercially reasonable benchmarks. If you want to use a material, supply, equipment, product or sign that we have not yet approved, or you want to purchase any items from any supplier that we have not approved, you must first notify us in writing and must submit to us, at our request, sufficient information, specifications, and samples for us to determine whether the services, material, supply, equipment, product or sign complies with our specifications and standards, or whether the supplier meets our approved supplier criteria. We reserve the right to approve or disapprove without any obligation to provide an explanation of the approval criteria to you. Within 90 days of receiving your request, we will either accept or reject the proposed item or supplier. You will not distribute or offer for sale any products or services of the proposed supplier until you receive our written approval. We do not charge a fee to evaluate alternative supplier or items. We may revoke our approval of any supplier or item with 30 days' prior written notice to you. Upon receipt of written notice of such revocation, you must cease to purchase from the disapproved supplier(s) or to purchase the disapproved item(s).

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)

What This Means (2025 FDD)

According to the 2025 Franchise Disclosure Document, Christies International Real Estate is not obligated to provide an explanation of the approval criteria to franchisees. Specifically, this applies when a franchisee seeks approval for a material, supply, equipment, product, or sign from a supplier not already approved by Christies International Real Estate.

Christies International Real Estate outlines a process where franchisees must notify them in writing and submit sufficient information for evaluation. The evaluation considers factors like price, service, quality, and delivery terms. However, Christies International Real Estate retains the right to approve or disapprove the request without having to explain their decision-making process.

This policy means that a Christies International Real Estate franchisee might not receive specific reasons if a proposed supplier or product is rejected. While the FDD states that Christies International Real Estate will respond to the franchisee's request within 90 days, there is no guarantee of transparency regarding the denial. This lack of transparency could make it difficult for franchisees to find alternative solutions or understand how to meet Christies International Real Estate's standards in the future. Franchisees should inquire about the typical reasons for supplier or product disapproval during their due diligence.

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.