How does Christies International Real Estate define 'affiliate' in the context of the franchise agreement?

According to Christies International Real Estate's 2025 Franchise Disclosure Document, an 'affiliate' is defined as an entity that is controlled by, or under common control with, another entity. This definition is important for prospective franchisees to understand because it clarifies the scope of Christies International Real Estate's network and the relationships between different entities within that network.

Understanding the definition of 'affiliate' is crucial for several reasons. First, it helps a franchisee understand the potential scope of competition or collaboration within the Christies International Real Estate system. For instance, Christies International Real Estate reserves the right for itself and its affiliates to engage in activities associated with the CHRISTIES INTERNATIONAL REAL ESTATE Marks and other brands, which could impact a franchisee's business.

Second, the definition affects the franchisee's rights and limitations. The agreement specifies that franchisees do not have the right to exclude, control, or impose conditions on Christies International Real Estate's development of future licensed, franchised, company, or affiliate-owned businesses. This means that Christies International Real Estate and its affiliates have considerable freedom to expand and operate without being restricted by individual franchisees.

Finally, the definition of 'affiliate' is relevant to the general release that franchisees must sign upon renewal of their franchise agreement. This release covers claims against Christies International Real Estate and its affiliates, officers, directors, employees, and agents, so understanding who qualifies as an affiliate is essential for assessing the scope of the release.