What business or advertising practices are Christies International Real Estate franchisees prohibited from engaging in?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not conduct any business or advertising practice which injures other CHRISTIE'S INTERNATIONAL REAL ESTATE businesses, the System or the goodwill associated with the Marks.
- 1.2.2.
If you and your agents are licensed, as prescribed by law, to provide real estate brokerage services in an area where another licensee, franchisee or Affiliate has been granted a protected territory by us ("Other Area") but their grant does not prevent others from offering real estate brokerage services under the Marks in the Other Area, so long as you do not exceed 5% of your inventory (as measured by the number of properties) at any given time, you may list properties for sale using the Marks in the Other Area so long as they are listed from your Main Office or Additional Office.
If your properties listed in the Other Area exceeds 5% of your inventory and, upon notice from us, you do not cease such listings promptly, you will be in default, and we can terminate the Agreement.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate FDD, franchisees must adhere to certain restrictions regarding business and advertising practices. Franchisees are prohibited from engaging in any business or advertising practice that could harm other Christies International Real Estate businesses, the overall system, or the goodwill associated with the brand's trademarks. This is a broad restriction designed to protect the integrity and reputation of the Christies International Real Estate brand.
Additionally, Christies International Real Estate franchisees operating in an area where another franchisee or affiliate has a protected territory are limited to listing no more than 5% of their properties for sale in that other area. Exceeding this limit and failing to promptly cease such listings after notice from Christies International Real Estate constitutes a default and could lead to termination of the franchise agreement. This policy aims to prevent territorial disputes and ensure that franchisees respect the protected territories granted to others within the Christies International Real Estate network.
These restrictions are typical in franchising, as franchisors need to maintain brand consistency and protect the interests of all franchisees. Prospective Christies International Real Estate franchisees should carefully review these limitations and ensure they understand the scope of their permitted activities to avoid potential conflicts or breaches of the franchise agreement. Understanding these restrictions is crucial for maintaining a healthy relationship with the franchisor and other franchisees within the Christies International Real Estate system.