How is 'Principal Owner' defined for a Christies International Real Estate franchise?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
- 21.11. "Principal Owner" means any person or entity who directly or indirectly owns a 5% or greater interest in you.
If any corporation or other entity other than a partnership is a Principal Owner, a Principal Owner also will mean a shareholder or owner of a 5% or greater interest in such corporation or other entity.
If a partnership is a Principal Owner, a Principal Owner also will mean each general partner of such partnership and, if such general partner is an entity, each owner of a 5% or greater interest in such general partner.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate FDD, a 'Principal Owner' is defined as any individual or entity that directly or indirectly owns 5% or more of the franchise. This definition extends beyond direct ownership to include shareholders or owners of 5% or greater interest in any corporation or entity that is a Principal Owner.
For partnerships, the definition includes each general partner. If a general partner is an entity, then it includes each owner of a 5% or greater interest in that general partner. This multi-layered definition ensures that all individuals with significant financial stakes in the franchise are considered Principal Owners, regardless of the business structure.
This definition is important because the 'Responsible Broker' must be a Principal Owner approved by Christies International Real Estate. The Responsible Broker oversees business operations, interacts with the franchisor, and holds the necessary real estate licenses. The Agent Support Director and Marketing Director do not need to be Principal Owners.