What is the 'System' relating to the establishment and operation of the Christies International Real Estate business?

According to Christies International Real Estate's 2025 Franchise Disclosure Document, the 'System' encompasses various elements critical to the operation of a Christies International Real Estate franchise. This includes luxury real estate brokerage products and services, along with any related services that Christies International Real Estate may designate in the future under its Marks. The System also incorporates approved products and services, specific types of equipment including the Computer System, and confidential information.

Furthermore, the System includes marketing, business development, and advertising techniques, operating procedures, product and service quality standards, and business methods. The Operations Manual, which franchisees receive electronic access to, is a key component, providing both mandatory specifications, standards, and operating procedures, as well as suggested practices. Franchisees are required to purchase an opening inventory of signage, products, supplies, materials, and equipment, and establish filing, accounting, and inventory control systems that comply with Christies International Real Estate's requirements.

In practical terms, this means a franchisee must adhere to Christies International Real Estate's established methods for running the business, from the technology used to the marketing strategies employed. The franchisee must also maintain the quality standards set by Christies International Real Estate. The franchisor can modify the Operations Manual, so franchisees need to stay updated on any changes. The Responsible Broker, who oversees the Business operations, must complete the initial training program and all mandatory follow-up training programs.

For a prospective franchisee, understanding the scope of the 'System' is crucial as it dictates how the business must be run. Compliance with the System is not optional; it is a requirement for maintaining the franchise agreement. Deviation from the System could lead to termination of the agreement, as indicated in the FDD. Therefore, a potential franchisee should carefully review the Operations Manual and seek clarification on any aspects of the System that are unclear before investing in a Christies International Real Estate franchise.