What is the term length of the Trademark License Agreement for Christies International Real Estate?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
Christie, Manson & Woods, Limited, our former affiliate, owns the trademarks set forth above ("IP Owner"), which are our principal Marks. IP Owner licenses these Marks to At World Properties, LLC (our "Parent," as described in Item 1) pursuant to a Trademark License Agreement dated November 16, 2020 (the "Trademark License Agreement"). The term of the Trademark License Agreement is 50 years, with two 25-year renewal options. The Trademark License Agreement provides us the exclusive right to use these Marks in connection with the marketing, sale or lease of luxury real estate and in connection with this licensing program. IP Owner may terminate the Trademark License Agreement if we breach and fail to cure or reasonably mitigate a material term of the agreement within 60 days; if we or IP Owner experiences a bankruptcy event; if certain of our interests or assets are acquired by a competitor; if we cease offering products or services using the Marks for a period of 6 months; if we cease to conduct our business; if we are otherwise liquidated or dissolved; if there is a material breach by us of the Right of First Offer agreement that was executed on the same date as the Trademark License Agreement; if we fail to meet certain performance metrics pertaining to number of offices and fees paid to IP Owner; or if IP Owner, the Marks, or the goodwill associated therewith are materially tarnished, damaged or diminished and that tarnishment, damage or diminishment, which was not caused by a breach of the Trademark License Agreement, damages our business, etc., as further described in the Trademark License Agreement. If the Trademark License Agreement is terminated or expires, you could lose the right to use the trademarks licensed to us under the Trademark License Agreement, subject to the discussion in the following paragraph.
Source: Item 13 — TRADEMARKS (FDD pages 38–40)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, the Trademark License Agreement has an initial term of 50 years, with the option to renew twice for 25 years each. This agreement, dated November 16, 2020, grants At World Properties, LLC, Christies International Real Estate's parent company, the exclusive right to use the trademarks for marketing, selling, or leasing luxury real estate, as well as for the licensing program.
The Trademark License Agreement outlines specific conditions under which it may be terminated. These include a failure to cure a material breach within 60 days, bankruptcy events affecting either Christies International Real Estate or the IP Owner, acquisition by a competitor, ceasing to offer products or services using the Marks for 6 months, ceasing business operations, liquidation or dissolution, a material breach of the Right of First Offer agreement, failure to meet performance metrics related to office numbers and fees paid to the IP Owner, or material damage to the IP Owner, the Marks, or associated goodwill.
For a prospective Christies International Real Estate franchisee, the long term of the Trademark License Agreement provides a degree of stability regarding the use of the brand's trademarks. However, it is crucial to understand the termination conditions, as the loss of trademark rights could significantly impact the franchisee's business. Franchisees should carefully review the License Agreement and Operations Manual to ensure compliance with the terms of the Trademark License Agreement and to avoid any actions that could lead to its termination.