What is the 'Advertising Fund Fee' for a Christies International Real Estate franchise?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
**7.1.
Advertising Fund.** We reserve the right to require that you to pay a monthly advertising fee ("Advertising Fund Fee") for deposit into a system marketing fund (the "Advertising Fund").
As of the Effective Date, we have not established an Advertising Fund, and we do not collect the Advertising Fund Fee.
We may implement, begin collecting, and increase the Advertising Fund Fee at any time upon written notice to you; however, the Advertising Fund Fee will not exceed three percent (3%) of Gross Revenue.
If we begin collecting the Advertising Fund Fee, you will pay the Advertising Fund Fee in the same manner and at the same time as the Royalty Fee.
If we begin collecting the Advertising Fund Fee, we will place all Advertising Fund Fees we receive in the Advertising Fund and we will manage such Advertising Fund.
Any CHRISTIE'S INTERNATIONAL REAL ESTATE businesses operated by us or our affiliates will not be required to contribute to the Advertising Fund.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate FDD, the franchisor currently does not collect an advertising fund fee. However, Christies International Real Estate retains the right to implement, begin collecting, and increase this fee at any time with written notice to the franchisee.
Should Christies International Real Estate decide to implement the advertising fee, it will not exceed three percent (3%) of the franchisee's gross revenue. The advertising fund is used for the general promotion of the brand and system, including expenses related to a call center, market research, customer retention, incentive programs, media planning and buying, advertising materials, public relations, technology investments, and digital marketing. Up to 10% of the fund may be used to solicit new franchisees.
Christies International Real Estate businesses operated by the franchisor or its affiliates are not required to contribute to the advertising fund. The FDD states that the advertising fund is not a trust or escrow account, and Christies International Real Estate has no fiduciary obligations regarding the fund. While the franchisor will provide an annual unaudited statement of receipts and disbursements upon written request, there is no guarantee that individual franchisees will directly benefit from advertising in their local market.