What is the 'Advertising Fund Fee' used for regarding Christies International Real Estate?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
The Advertising Fund will pay expenses in connection with the general promotion of the Marks and the System, which may include, but are not limited to, the development and operation of a call center; market research; customer retention; incentive programs; sales development programs; media planning; media buying fees; creating and producing advertising materials; outside advertising agency fees for creating advertising programs; public relation activities; outside public relations agency fees; technology investments; digital marketing; and reimbursing us the costs of administering the Advertising Fund.
Additionally, we may use up to ten percent (10%) of the Advertising Fund to solicit new franchisees.
The Advertising Fund is not a trust or escrow account, and we have no fiduciary obligations regarding the Advertising Fund.
We cannot ensure that any individual franchisees will benefit directly or on a pro rata basis from the future placement of any such advertising in its local market.
We may spend in any fiscal year an amount greater or less than the aggregate contributions to the Advertising Fund in that year.
We will determine the methods of advertising, media employed, and scope, contents, terms and conditions of advertising, marketing, promotional and public relations campaigns, and programs.
Upon written request, we will provide you an annual unaudited statement of the receipts and disbursements of the Advertising Fund for the most recent calendar year.
Any end-of-year surpluses or shortages in the Advertising Fund in a given year will carry over to the next year.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, the Advertising Fund Fee, if implemented, is used for the general promotion of the Marks and the System. This includes various activities such as the development and operation of a call center, market research, customer retention, incentive programs, and sales development programs. It also covers media planning and buying, creating advertising materials, and fees for outside advertising agencies and public relations activities. Furthermore, the fund can be used for technology investments and digital marketing. Christies International Real Estate may also use the fund to reimburse themselves for the costs of administering it.
Notably, up to 10% of the Advertising Fund can be used to solicit new franchisees. The document specifies that the Advertising Fund is not a trust or escrow account, and Christies International Real Estate has no fiduciary obligations regarding it. There is no guarantee that individual franchisees will directly benefit from advertising in their local market.
Christies International Real Estate determines the advertising methods, media, and the scope and content of advertising campaigns. Upon written request, franchisees are entitled to receive an annual unaudited statement of the Advertising Fund's receipts and disbursements for the most recent calendar year. Any surpluses or shortages in the fund at the end of the year will be carried over to the next year. As of the effective date of the 2025 FDD, Christies International Real Estate has not established an Advertising Fund, and does not collect the Advertising Fund Fee.