Can the 'Responsible Broker' for a Christies International Real Estate franchise engage in other business activities?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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. You and each Principal Owner will not, during the term of this Agreement, directly, or as an employee, agent, consultant, partner, officer, director or shareholder of any other person, firm, entity, partnership or corporation, own, operate, lease, franchise, conduct, engage in, be connected with, have any interest in or assist any person or entity engaged in any business that offers for sale real estate brokerage services, or any other related business that is similar to, offers the same or similar products or services to, or is otherwise competitive with, the Business, anywhere in the United States, including, but not limited to, those competing businesses set forth in Section 6.3(e), except the ownership of securities listed on a stock exchange or traded on the over-the-counter market that represent 1% or less of that class of securities. For clarification and avoidance of doubt, the above restriction regarding the operation of competing businesses applies to any separate real estate brokerage business under any brand, or Protected Territories or Broker Affiliate License Agreements or other territories, franchises, licenses or other businesses you, your affiliates or Principal Owner have with us or any of our affiliates, including following the termination or expiration of any such rights.
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 Responsible Broker is subject to certain restrictions regarding other business activities during the term of the franchise agreement. Specifically, the Responsible Broker cannot own, operate, or be involved with any business that offers real estate brokerage services or related services that compete with the Christies International Real Estate business anywhere in the United States. This restriction applies to involvement as an employee, agent, consultant, partner, officer, director, or shareholder.
However, there is an exception for owning securities listed on a stock exchange or traded over-the-counter, provided that the ownership represents 1% or less of that class of securities. This means the Responsible Broker can have minor, passive investments in competing businesses without violating the agreement. The FDD clarifies that these restrictions extend to any separate real estate brokerage business under any brand, including other territories, franchises, licenses or businesses the Responsible Broker or their affiliates have with Christies International Real Estate.
After the franchise agreement expires or terminates, the Responsible Broker is further restricted for a period of one year from diverting or attempting to divert any Christies International Real Estate business, account, or customer to any competing business. This post-term restriction is designed to protect Christies International Real Estate's customer relationships and business goodwill. These covenants aim to prevent conflicts of interest and protect the Christies International Real Estate system by ensuring the Responsible Broker's full commitment during the agreement and a limited period afterward.