What is considered an 'Other Area' in the context of Christies International Real Estate franchise territories?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Conversely, to the extent another licensee, franchisee, Affiliate, or its agents, are licensed as prescribed by law, to provide real estate brokerage services in your Protected Territory, we will use commercially reasonable efforts to limit such party from listing more than 5% of its inventory of properties using the Marks in your Protected Territory, assuming such party has not been granted unlimited rights by us. However, we have no obligation to enforce this against such other parties.
Source: Item 12 — TERRITORY (FDD pages 33–38)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate Franchise Disclosure Document, an 'Other Area' is defined as a geographic location where another Christies International Real Estate licensee, franchisee, or affiliate has been granted a protected territory. However, this grant does not completely prevent others from offering real estate brokerage services under the Christies International Real Estate marks in that area.
For a Christies International Real Estate franchisee, this means that while they may have their own protected territory, other franchisees or affiliates might also have protected territories nearby. The document stipulates that a franchisee can list properties for sale in these 'Other Areas,' provided that the properties listed do not exceed 5% of their total inventory at any given time. These listings must also be managed from the franchisee's Main Office or Additional Office.
This 5% limitation is subject to monitoring by Christies International Real Estate. Should a franchisee exceed this limit and fail to promptly reduce their listings upon notification, it would constitute a default under the License Agreement, potentially leading to termination. Conversely, Christies International Real Estate states it will use commercially reasonable efforts to ensure that other licensees, franchisees, or affiliates do not exceed a similar 5% inventory listing in a franchisee's protected territory, assuming those parties have not been granted unlimited rights. However, Christies International Real Estate does not guarantee enforcement of this limitation against other parties.