What is the specific timeframe for a Christies International Real Estate franchisee to cure any breach or violation?
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 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–47)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, a Christies International Real Estate franchisee has a specific timeframe to cure a breach related to listing properties in another protected territory. If a franchisee lists properties exceeding 5% of their inventory in an area where another franchisee or affiliate has protected rights, Christies International Real Estate will notify them. Upon receiving this notice, the franchisee must cease such listings promptly to avoid being in default, which could lead to termination of the franchise agreement.
This clause is significant for prospective franchisees as it highlights the importance of adhering to territorial restrictions. Franchisees must carefully manage their property listings to ensure compliance with the 5% threshold in other protected areas. Failure to do so can result in a notice of default and potential termination of the agreement, emphasizing the need for diligent monitoring and prompt action upon notification of a violation.
While the FDD specifies the action required to cure the breach (ceasing the listings), it does not define the exact number of days or a specific timeframe considered "promptly." This ambiguity could create uncertainty for franchisees. Therefore, it is crucial for potential franchisees to seek clarification from Christies International Real Estate regarding what constitutes a "prompt" response in such situations to avoid any misunderstandings or disputes.