Under what conditions can Christies International Real Estate terminate the license agreement?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
company or affiliate-owned CHRISTIE'S INTERNATIONAL REAL ESTATE businesses, or other company owned businesses at any time or at any location.
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.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–47)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, there are several conditions under which the License Agreement can be terminated. One condition involves listing properties for sale in an area where another licensee, franchisee, or affiliate has been granted a protected territory, referred to as "Other Area." If a Christies International Real Estate franchisee exceeds 5% of their inventory with properties listed in this "Other Area" and fails to cease such listings promptly after receiving notice from Christies International Real Estate, it constitutes a default, allowing Christies International Real Estate to terminate the agreement.
Another cause for termination is failing to meet the Minimum Performance Requirement during the term of the License Agreement. These requirements are detailed in Exhibit 1 of the License Agreement and are determined by factors such as the franchisee's experience, the area of operation, and the number of affiliated agents. For franchisees converting an existing real estate business, the Minimum Performance Requirement is based on a minimum amount of Gross Revenues specified in the License Agreement. If a franchisee fails to satisfy these requirements, Christies International Real Estate has the right to terminate the agreement or, alternatively, modify or rescind any territorial or protected rights.
Additionally, if a Christies International Real Estate franchisee or their Principal Owners continue to use the Marks, and/or use the System after the expiration of this Agreement, you will be in default of this Agreement and Christies International Real Estate may exercise all remedies available to them, including those listed in Section 11. Christies International Real Estate may charge you a Royalty Fee in the amount of your highest Royalty Fee paid to them in the last twenty-four (24) months of the Term for each month you operate after expiration. In addition, IP Owner may seek remedies pursuant to its rights under the Trademark License Agreement.