Can Christies International Real Estate repurchase a franchisee's business without the franchisee's consent?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
- **11.3.
Our Option to Purchase the Business**.
If you were new to the real estate brokerage business before you signed this Agreement and became an Affiliate, and you did not have an existing real estate brokerage business that converted to the CHRISTIE'S INTERNATIONAL REAL ESTATE brand, then if this Agreement expires or is terminated for any reason, we have the option, but not the obligation, upon 60 days' written notice from the date of expiration or termination, to purchase from you all the tangible and intangible assets relating to the Business (excluding any unsalable inventory, cash, short term investments and accounts receivable) (collectively, the "Purchased Assets").
We may assign this option to purchase, and assignment separate and apart from the remainder of t
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate Franchise Disclosure Document, under certain conditions, Christies International Real Estate has the option to purchase a franchisee's business. Specifically, if the franchisee was new to the real estate brokerage business before signing the agreement and did not have an existing real estate brokerage business that converted to the Christies International Real Estate brand, then Christies International Real Estate has the option to purchase the business.
This option is available to Christies International Real Estate if the Franchise Agreement expires or is terminated for any reason. To exercise this option, Christies International Real Estate must provide the franchisee with 60 days' written notice from the date of expiration or termination. The purchase would include all tangible and intangible assets relating to the business, excluding unsalable inventory, cash, short-term investments, and accounts receivable.
This clause means that a franchisee who is new to the real estate business faces the possibility of Christies International Real Estate buying back the business if the agreement ends. However, this is an option, not an obligation, for Christies International Real Estate, and they may assign this option to purchase to another party. This buy-back provision provides Christies International Real Estate with a degree of control over the brand and its representation, especially when dealing with franchisees who are new to the industry.