What are 'Allowances' as defined by Christies International Real Estate?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates have the right to receive, collect and retain payments, manufacturing allowances, marketing allowances, rebates, credits, monies, or benefits (collectively, "Allowances") offered by our suppliers to you or to us or our affiliates based upon your and/or other Affiliates' purchases of products and services. These Allowances may be based on individual or network-wide purchases of products and services. You assign to us or our designee all of your right, title and interest in and to any and all such Allowances and authorize us or our designee to collect and retain any or all such Allowances without restriction (unless otherwise prohibited by the supplier). We may use all amounts so received for any purpose we and our affiliates deem appropriate.
During our last fiscal year that ended December 31, 2024, we did not receive any Allowances from the sale of required products and services to our Affiliates.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, 'Allowances' are defined as payments, manufacturing allowances, marketing allowances, rebates, credits, monies, or benefits offered by suppliers based on purchases of products and services by Christies International Real Estate franchisees or the network as a whole. These allowances are collected and retained by Christies International Real Estate or their designee, and the funds can be used for any purpose they deem appropriate.
For a prospective franchisee, this means that any rebates or benefits they might expect to receive directly from suppliers due to their purchases actually go to Christies International Real Estate. The franchisee essentially assigns their rights to these allowances to the franchisor. This is a fairly common practice in franchising, allowing the franchisor to potentially offset costs or increase revenue.
The FDD also states that during the last fiscal year ending December 31, 2024, Christies International Real Estate did not receive any Allowances from the sale of required products and services to its Affiliates. However, the agreement allows them to collect such allowances in the future. Franchisees should be aware that they will not directly benefit from any supplier incentives or rebates, as these are directed to the franchisor.