Christie's International Real Estate

What specific events or market conditions triggered the unusually high closure count of 16 units in 2022, representing a 44.4% reduction in the system?

Of the 6 pending litigation cases, how many are initiated by franchisees against the franchisor, and what are the primary categories of claims being contested?

Can you provide detailed explanations for the 12 franchisor-initiated terminations or non-renewals over the 3-year period, including specific reasons and whether franchisees were given opportunity to cure?

Given the termination rate of 10.3% (more than double the typical range), what specific performance or compliance issues most frequently lead to franchise terminations?

How does the franchisor support franchisees in generating revenue sufficient to cover the 6.0% royalty, 3.0% ad fund, and $125 technology fee in a market where your system has contracted 16.7% in three years?

What is the average unit volume (AUV) and median gross sales for current franchisees, and how do these compare to the initial investment and ongoing fee structure?

Can you explain the franchisor's encroachment policy in detail, given that territory is protected but non-exclusive—how does the franchisor prevent overlap with other Christie's franchisees?

What is the typical timeframe for a franchisee to achieve profitability, and what percentage of current franchisees are profitable according to your internal data?

Regarding the personal guarantee requirement for all principal owners extending beyond the agreement term, what is the maximum duration of personal liability post-termination or non-renewal?

How many of the 8 total litigation cases (and specifically the 6 pending) involve claims related to territory disputes, encroachment, or competitive actions by other franchisees?

What specific support, training, or operational resources does the franchisor provide to address the high turnover rate, and how have these been enhanced since the 2022 closures?

Are the $1,000 renewal fee and $5,000 transfer fee mandatory, or are there circumstances where these fees are waived or negotiated?

Given the non-compete is 0 years and 0 miles, what prevents former franchisees from immediately competing in the same territory after exit?

What is the franchisor's policy on franchisee non-renewal—does the franchisor prioritize renewal or allow franchisees to exit without penalty after the initial 10-year term?

Can you provide a breakdown of the 7 'ceased other' closures in 2022 and the 3 in 2024—what circumstances led to these exits outside of voluntary closure or termination?

How does the franchisor allocate and utilize the 3.0% ad fund, and can franchisees see a detailed accounting of how their ad fund contributions are spent?

What specific broker support, lead generation, or technology tools differentiate this franchise from independent real estate operations and justify the ongoing fee structure?

Are there any franchise agreement modifications, dispute resolution amendments, or litigation settlement terms that could provide context for the 6 pending cases?

What percentage of current franchisees have exercised their renewal option at the end of the initial 10-year term, and what renewal rate would you consider healthy for system stability?