Is the Christies International Real Estate Advertising Fund considered a trust or escrow account?

According to the 2025 Christies International Real Estate Franchise Disclosure Document, the Advertising Fund is not a trust or escrow account. Christies International Real Estate states explicitly that they have no fiduciary obligations regarding the Advertising Fund. This means that the fund is not legally required to be managed in the franchisees' best interests, unlike a trust or escrow account.

Christies International Real Estate will manage the Advertising Fund, placing all Advertising Fund Fees received into it. These funds will be used for the general promotion of the Marks and the System, covering expenses such as call center operations, market research, customer retention, advertising materials, agency fees, public relations, technology investments, and digital marketing. Notably, up to 10% of the Advertising Fund can be used to solicit new franchisees.

Christies International Real Estate retains control over advertising methods, media, and campaign terms. While franchisees may request an annual unaudited statement of the Advertising Fund's receipts and disbursements, there is no guarantee that individual franchisees will directly benefit from advertising in their local market. Any surpluses or shortages in the fund at year-end will carry over to the next year. This arrangement gives Christies International Real Estate significant discretion in managing and allocating the advertising funds, which may or may not directly benefit each franchisee.