Is the annual statement of the Christies International Real Estate Advertising Fund audited?

According to the 2025 Christies International Real Estate FDD, the annual statement of receipts and disbursements of the Advertising Fund is unaudited. Upon written request, Christies International Real Estate will provide franchisees with an annual unaudited statement of the receipts and disbursements of the Advertising Fund for the most recent calendar year.

This means that while franchisees can request to see where the advertising fees are being spent, the statement they receive will not have been reviewed or verified by an independent accounting firm. The lack of an audit means there is less assurance that the statement is completely accurate or presented in accordance with generally accepted accounting principles.

Franchisors commonly use advertising funds to promote the brand, and practices regarding auditing these funds vary. Some franchisors provide audited statements, while others do not. The FDD indicates that the Advertising Fund is not a trust or escrow account, and Christies International Real Estate has no fiduciary obligations regarding the Advertising Fund. This provides Christies International Real Estate with significant discretion in how the fund is managed and spent, subject to the terms outlined in the franchise agreement.

A prospective Christies International Real Estate franchisee should consider the implications of receiving an unaudited statement. While it provides some transparency, it does not offer the same level of assurance as an audited statement. Franchisees may want to inquire further about the controls and processes Christies International Real Estate has in place to ensure the accuracy of the financial information related to the Advertising Fund.