Does the Christies International Real Estate Affiliate Disclosure Questionnaire address the franchisee's understanding of territorial rights?

According to the 2025 Christies International Real Estate Franchise Disclosure Document, the Affiliate Disclosure Questionnaire does address the franchisee's understanding of territorial rights. Specifically, the questionnaire asks: "Do you understand that any territorial rights you have been granted (which may be none) are subject to limitations and exceptions?" This question ensures that prospective franchisees acknowledge that their territorial rights, if any, may not be absolute.

This acknowledgement is crucial because it sets realistic expectations regarding the scope of the franchisee's exclusive territory. It highlights the possibility that no territorial rights may be granted, or that existing rights could be limited or subject to certain exceptions. This could include other channels of distribution, the franchisor's right to operate or license other outlets, or other franchisees operating within the same territory under certain conditions.

By including this question in the Affiliate Disclosure Questionnaire, Christies International Real Estate aims to confirm that franchisees are aware of these potential limitations before entering into the agreement. This proactive approach helps to mitigate future disputes or misunderstandings related to territorial rights, ensuring a more transparent and informed relationship between the franchisor and the franchisee. Prospective franchisees should carefully consider the implications of this question and seek clarification on any territorial rights and their limitations before signing the agreement.