What is the meaning of 'Other Area' in the context of a Christies International Real Estate franchise agreement?
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.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate Franchise Disclosure Document, an 'Other Area' refers to a territory where another Christies International Real Estate licensee, franchisee, or affiliate has been granted a protected territory, but their grant does not completely prevent others from offering real estate brokerage services under the Christies International Real Estate brand.
For a Christies International Real Estate franchisee, this means that while you primarily operate within your protected territory, you may also list properties for sale in these 'Other Areas,' provided you and your agents are licensed to provide real estate brokerage services there. However, there's a limit: the properties listed in the 'Other Area' cannot exceed 5% of your total inventory at any given time, and these listings must originate from your Main Office or any authorized Additional Office.
If a Christies International Real Estate franchisee exceeds the 5% limit and does not promptly reduce their listings upon notice from Christies International Real Estate, it constitutes a default under the franchise agreement, potentially leading to termination. This clause ensures that franchisees focus primarily on their designated territories while allowing limited expansion into areas where the brand is already represented but not exclusively.