What are the requirements for a Christies International Real Estate franchisee to renew their license agreement?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
m Performance Requirement during the term of this Agreement, we have the right to terminate this Agreement, or, in lieu of termination, modify or rescind any such territorial or protected rights.
2. TERM AND RENEWAL
- 2.1. Term. This Agreement will be effective for a ten (10) year term beginning on the Effective Date specified in this Agreement.
- 2.2. Renewal. You will have the right to renew the rights granted under this Agreement for one (1) additional term of ten (10) years, provided the following conditions are met:
- (a) we are still offering licenses or franchises under the Marks and System;
- (b) you meet our then-current standards for new CHRISTIE'S INTERNATIONAL REAL ESTATE Affiliates;
- (c) you have given us written notice of your intention to renew at least 365 days before the end of the then-existing term of this Agreement;
- (d) you are in compliance with all provisions of this Agreement, including all monetary obligations you owe to us or our affiliates, throughout the term of this Agreement;
- (e) you have paid a renewal fee of $1,000 (the "Renewal Fee") to us at least six months before the then-existing term of this Agreement expires;
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–47)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, a franchisee has the right to renew their license agreement for one additional term of ten years, provided certain conditions are met. These conditions include that Christies International Real Estate is still offering licenses or franchises under the Marks and System at the time of renewal. The franchisee must also meet the then-current standards for new Christies International Real Estate Affiliates, which suggests that the standards for affiliates may change over time.
To initiate the renewal process, the franchisee must provide written notice of their intention to renew at least 365 days before the end of the existing term. This early notification is essential to ensure timely processing of the renewal. The franchisee must also be in full compliance with all provisions of the existing agreement, including meeting all monetary obligations owed to Christies International Real Estate or its affiliates throughout the term. This highlights the importance of maintaining good financial standing and adherence to the agreement terms.
In addition to compliance and notification, the franchisee is required to pay a renewal fee of $1,000 at least six months before the existing term expires. Furthermore, the franchisee must sign Christies International Real Estate's then-current broker Affiliate license agreement, which may contain conditions, terms, and fees that are materially different from the original agreement. This implies that the terms of the renewed agreement could be significantly different, and franchisees should carefully review the new agreement. Finally, the franchisee and each Principal Owner must sign a general release, in a form acceptable to Christies International Real Estate, of all claims against Christies International Real Estate and its affiliates, officers, directors, employees, and agents.