Does the Christies International Real Estate agreement contain a choice of law clause?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
| QUESTIONS | YES | NO | |
|---|---|---|---|
| 19 | Do you understand that the Agreement contains a number of provisions that may affect your legal rights, including required mediation, designated locations or states for any judicial proceedings, a waiver of a jury trial, a waiver of punitive or exemplary damages, limitations on when claims may be filed, and other waivers and limitations? |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 47–53)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate FDD, the Affiliate Disclosure Questionnaire addresses legal rights within the agreement. Specifically, question 19 asks prospective franchisees if they understand that "the Agreement contains a number of provisions that may affect your legal rights, including required mediation, designated locations or states for any judicial proceedings..." This indicates that the Christies International Real Estate agreement does contain a clause designating locations or states for judicial proceedings, which functions as a choice of law clause.
This clause is important for prospective franchisees because it dictates where any legal disputes with Christies International Real Estate would be resolved. Franchisees should be aware of the implications of this clause, as it may require them to litigate in a state that is not their own, potentially increasing legal costs and logistical challenges. The FDD also mentions that the agreement includes required mediation, a waiver of a jury trial, a waiver of punitive or exemplary damages, and limitations on when claims may be filed.
It is typical for franchise agreements to include choice of law and venue clauses, as franchisors generally prefer to have disputes resolved in their home state. Franchisees should carefully review this section of the Christies International Real Estate agreement with an attorney to fully understand their rights and obligations. Understanding these provisions is crucial before signing the agreement, as they can significantly impact a franchisee's ability to pursue legal action against the franchisor.