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B66/100FDD 2025

Christie’s International Real Estate — Litigation & Risk

Real Estate · FDD Items 3, 4 & 5

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Elevated Risk

10 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
10
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
66 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
1 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Illinois
State whose law governs disputes — relevant if you're not based there

What drove the 66/100 rating

Risk Score Breakdown

  1. 01MINORSystem contraction of 8.3% YoY (36 units) indicates shrinking franchise network and potential brand deterioration
  2. 02MINORMultiple class action antitrust lawsuits (Hooper, Burton, Friedman, March, Tuccori, Umpa) suggest systemic compliance issues and reputational risk that could impact agent recruitment and client trust
  3. 03MINORNo average revenue or net income disclosure (Item 19) prevents validation of ROI claims and franchisee profitability analysis
  4. 04HIGHHigh litigation exposure across property disputes (Stuart, Kjarsgaard, Aratlakov, Lyons) with allegations of fraud/negligence creates legal liability risk for franchisees
  5. 05MINORWide royalty range (3-6%) lacks transparency on which metrics trigger higher tiers, creating profit margin unpredictability
  6. 06MINORInvestment spread of $64,475-$443,125 (586% variance) suggests inconsistent startup costs and unclear break-even projections by territory

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.