Under what condition can Christies International Real Estate terminate the License 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 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 43)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, the company can terminate the License Agreement if a franchisee lists properties for sale in an area where another franchisee has a protected territory (referred to as "Other Area") and the franchisee's listings in that area exceed 5% of their total inventory.
Specifically, this condition applies if the franchisee and their agents are licensed to provide real estate brokerage services in the Other Area, but the protected territory granted to the other franchisee does not completely prevent others from offering real estate brokerage services under the Christies International Real Estate marks. The franchisee is allowed to list properties in the Other Area, provided they do so from their Main Office or Additional Office and do not exceed the 5% inventory threshold.
If the franchisee exceeds the 5% limit and does not promptly cease such listings after receiving notice from Christies International Real Estate, it constitutes a default under the License Agreement, giving Christies International Real Estate the right to terminate the agreement. This policy is in place to protect the territorial rights of franchisees and maintain brand integrity within the Christies International Real Estate system.