What is the 'Advertising Fund' used for regarding Christies International Real Estate?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
Any 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 10% of the Advertising Fund to solicit new franchise sales. 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 Affiliate 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. We do not intend to audit the Advertising Fund. 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 is used for the general promotion of the Marks and the System. This includes expenses related to operating a call center, market research, customer retention and incentive programs, sales development, media planning and buying, creating advertising materials, and fees for advertising and public relations agencies. It also covers technology investments, digital marketing, and reimbursing Christies International Real Estate for administering the fund.
Christies International Real Estate may also allocate up to 10% of the Advertising Fund to solicit new franchisees. The document clarifies 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.
The methods of advertising, media channels, and the scope of marketing campaigns are determined by Christies International Real Estate. Franchisees can request an annual unaudited statement of the Advertising Fund's receipts and disbursements. Any surplus or shortage in the fund at the end of the year will be carried over to the next year.
Prospective franchisees should note that Christies International Real Estate businesses operated by the company or its affiliates are not required to contribute to the Advertising Fund. This could potentially create an uneven playing field where company-owned operations benefit from the fund without contributing to it. Franchisees should inquire about the specific plans for the Advertising Fund and how it will support their local marketing efforts.