What is the obligation of a Christies International Real Estate franchisee regarding curing any breach or violation?

According to the 2025 Christies International Real Estate Franchise Disclosure Document, if a franchisee lists properties for sale using the Marks in an area where another franchisee has protected territory ("Other Area"), and those listings exceed 5% of the franchisee's inventory, Christies International Real Estate will notify the franchisee. The franchisee is then obligated to promptly cease such listings to avoid being in default, which could lead to termination of the Franchise Agreement. This clause ensures that franchisees respect the territorial boundaries of other franchisees within the Christies International Real Estate system.

This requirement is significant for prospective franchisees as it highlights the importance of adhering to territorial restrictions. While franchisees have the right to offer and sell real estate brokerage services outside their protected territory, these rights are subject to limitations. Specifically, if a franchisee's listings in another franchisee's protected area exceed the 5% threshold, they must take immediate action to reduce those listings. Failure to do so constitutes a breach of the agreement and could result in the termination of the franchise.

Christies International Real Estate retains specific rights regarding the Marks and business operations. They reserve the right to engage in activities associated with the CHRISTIE'S INTERNATIONAL REAL ESTATE Marks and other business activities not specifically granted to the franchisee. This includes the right to operate or franchise other businesses, even if they compete with the franchisee's business, provided they are outside the franchisee's protected territory. This reservation of rights underscores that the franchisee's rights are limited to those explicitly granted in the License Agreement, and Christies International Real Estate maintains broad control over the brand and its expansion.