What constitutes the Protected Territory for a Christies International Real Estate franchise?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
o grant you the right to develop and operate a licensed CHRISTIE'S INTERNATIONAL REAL ESTATE business subject to the terms and conditions of this Agreement (including all exhibits and related documents) and our Operations Manual.
AGREEMENTS
NOW, THEREFORE, for value received, you and we ("the Parties") agree as follows:
1. GRANT
1.1. Grant. Subject to the provisions contained in this Agreement, including all exhibits and related documents, and Operations Manual, we grant you a non-exclusive license to own and operate a CHRISTIE'S INTERNATIONAL REAL ESTATE business (the "Business"). The physical address of your Business ("Main Office") must be located within the Protected Territory and approved by us in writing before you can begin to operate your Business. Your Main Office and the Protected Territory are identified in Exhibit 1 to this Agreement. You may not relocate your Main Office without our prior written consent, as described in Section 5.2 of this Agreement.
1.2 Nature of the Protected Territory. Except as described below, and except as modified by Exhibit 1 (if applicable), neither we nor our affiliates will establish and operate, or grant licenses or franchises to others to establish and operate a CHRISTIE'S INTERNATIONAL REAL ESTATE business within the Protected Territory during the term of this Agreement, so long as you are in compliance with this Agreement. The license granted to you under this Agreement is personal in nature and shall only be used from the Main Office and any Additional Office authorized by us. Notwithstanding the preceding sentence, and subject to the terms of this Agreement, you shall have the right to offer and sell real estate brokerage services identified by the Marks through any other channels of distribution, including the Internet but excluding the metaverse. We reserve, maintain, and control all rights with respect to said metaverse. As used herein, "metaverse" means any 3D virtual space powered by technologies – including virtual reality, augmented reality, artificial intelligence, the Internet of Things, and blockchain – that allows people to interact with each other and to have lifelike experiences online. The rights granted under this Agreement are subject to the limitations set forth in the Operations Manual or as we otherwise periodically prescribe, which may include certain territorial policies that we establish or modify from time to time. You may not establish or operate any CHRISTIE'S INTERNATIONAL REAL ESTATE office outside the Protected Territory, unless we permit you to do so under a separate broker Affiliate license agreement. You may not subfranchise or sublicense any of your rights under this Agreement.
1.2.1 Subject to Section 1.2.2 below, we and our affiliates, and our and their respective licensees, franchisees, and Affiliates, as well as our agents and the agents of any of these parties, have the right (without compensation to you) to offer and sell real estate brokerage services under the Marks to clients located within the Protected Territory and for real estate located within the Protected Territory, as long as the real estate brokerage services are offered and sold from offices of CHRISTIE'S INTERNATIONAL REAL ESTATE businesses outside of the Protected Territory. In turn, and also subject to Section 1.2.2 below, you and your agents have the right to offer and sell real estate brokerage services under the Marks to clients located outside the Protected Territory and for real estate located outside the Protected Territory but only inside the United States (including Puerto Rico, the U.S. Virgin Islands, and other U.S. territories), as its borders exist on the Effective Date, so long as the real estate brokerage services are offered and sold from the Main Office and any authorized Additional Office. However, you acknowledge and agree: (1) that your rights outside your Protected Territory may be limited based on territorial grants or protections that we or our affiliates have granted to other Affiliates or other third parties, and (2) that the scope of your rights outside of your Protected Territory may be modified by us from time to time, and are subject to the territorial policies that we establish or modify from time to time in the Operations Manual.
1.2.2.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate Franchise Disclosure Document, the Protected Territory for a franchisee is defined in Exhibit 1 of the Franchise Agreement and the physical address of the Main Office must be located within this territory. Christies International Real Estate agrees not to establish or franchise another Christies International Real Estate business within the Protected Territory during the agreement term, provided the franchisee remains compliant with the agreement. The franchise license is specific to the Main Office and any authorized Additional Offices. Franchisees cannot operate a Christies International Real Estate office outside their Protected Territory without a separate agreement and are prohibited from subfranchising their rights.
However, Christies International Real Estate retains significant rights within and outside the Protected Territory. They can offer real estate services under the Christies International Real Estate brand to clients inside the Protected Territory from offices located outside of it. Franchisees, in turn, can offer services outside their territory but only within the United States, subject to limitations based on other franchisees' territorial rights and the policies outlined in the Operations Manual.
Christies International Real Estate also reserves the right to operate any business, including real estate businesses, under different brands within the Protected Territory. They can also engage in activities like internet sales and marketing without restriction. This means that while franchisees have some territorial protection for physical offices, Christies International Real Estate can still compete through other channels and brands, and other franchisees can solicit business within the territory from locations outside of it.
It is important for prospective Christies International Real Estate franchisees to carefully review Exhibit 1 of the Franchise Agreement to understand the exact boundaries of their Protected Territory. They should also inquire about any existing or planned exceptions or limitations that could affect their ability to operate within that territory. Understanding these details is crucial for assessing the potential market and competition in their area.