Under the Christies International Real Estate agreement, what section describes the expiration of the term?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.3. Non-Renewal. If you do not intend to renew your rights under this Agreement, you must provide us written notice of such at least 365 days before the expiration date of this Agreement. You must comply with all post-termination and post-expiration requirements under this Agreement beginning the date this Agreement expires.
- 2.4. Operating After Expiration. If you or your Principal Owners continue to use the Marks, and/or use the System after the expiration of this Agreement, you will be in default of this Agreement and we may exercise all remedies available to us, including those listed in Section 11. We may charge you a Royalty Fee in the amount of your highest Royalty Fee paid to us in the last twenty-four (24) months of the Term for each month you operate after expiration. In addition, IP Owner may seek remedies pursuant to its rights under the Trademark License Agreement.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate Franchise Disclosure Document, Section 2.3, titled "Non-Renewal," outlines the requirements if a franchisee does not intend to renew their agreement. Specifically, the franchisee must provide written notice to Christies International Real Estate at least 365 days before the agreement's expiration date. Additionally, upon expiration, the franchisee must adhere to all post-termination and post-expiration requirements as stipulated in the agreement.
Section 2.4, "Operating After Expiration," addresses the implications if a franchisee continues to use Christies International Real Estate's marks or system after the agreement's expiration. In such cases, the franchisee will be in default and Christies International Real Estate may pursue all available remedies, including those listed in Section 11 of the agreement. Furthermore, Christies International Real Estate may charge the franchisee a royalty fee equivalent to the highest royalty fee paid during the last 24 months of the term for each month of operation post-expiration. The IP owner may also seek remedies under the Trademark License Agreement.
These provisions are important for prospective franchisees as they clearly define the obligations and potential consequences associated with the expiration of the franchise agreement. Franchisees must be aware of the notification deadlines for non-renewal and the implications of continuing to operate under the Christies International Real Estate brand after the agreement has expired. This ensures a smooth transition and avoids potential legal or financial repercussions.