Under what conditions does the guarantee of performance for Christies International Real Estate continue?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, Christie's International Real Estate Management, LLC ("CIRE Management, LLC"), a Delaware limited liability company (the "Guarantor"), located at 20 Rockefeller Plaza, New York, NY 10020, absolutely and unconditionally guarantees to assume the duties and obligations of Christie's International Real Estate, LLC, a Delaware corporation (the "Franchisor") under its franchise registration in each state where the franchise is registered, and under its license agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that license agreement may be entered into with licensees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the license agreement are satisfied or until the liability of Franchisor to its licensees under the license agreement have been completely discharged, whichever occurs first. The Guarantor is not discharged from liability if a claim by a licensee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the guarantee of performance provided by Christie's International Real Estate Management, LLC for Christie's International Real Estate continues until all obligations of the Franchisor under its franchise registrations and the license agreement are satisfied. Alternatively, the guarantee remains in effect until the liability of the Franchisor to its licensees under the license agreement has been completely discharged, whichever event occurs first.
This means that Christie's International Real Estate Management, LLC, as the Guarantor, is committed to ensuring that Christie's International Real Estate fulfills its duties and responsibilities to its franchisees. This commitment extends to both the franchise registrations and the specific license agreements that franchisees enter into. The guarantee remains active as long as any obligations or liabilities exist between Christie's International Real Estate and its franchisees.
Importantly, the guarantee is not discharged if a claim by a licensee (franchisee) against Christie's International Real Estate remains outstanding. This provision protects franchisees by ensuring that the Guarantor remains responsible for the Franchisor's obligations even if a franchisee has an unresolved claim. The Guarantor does not waive the right to receive notice of default on the part of the Franchisor, but notice of acceptance of the guarantee is waived. This guarantee is also binding on the Guarantor's successors and assigns, providing long-term security for franchisees.
For a prospective Christie's International Real Estate franchisee, this guarantee offers a significant level of financial security. It assures them that the Franchisor's obligations are backed by Christie's International Real Estate Management, LLC, reducing the risk that the Franchisor will fail to meet its commitments. This guarantee remains in place until all obligations are met or liabilities are fully discharged, providing a safety net for the franchisee throughout the term of their agreement.