Does Christies International Real Estate currently have an Advertising Fund?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising Fund. We do not currently have an Advertising Fund, and we have no current plans to establish one. However, in the future, we reserve the right to require you to pay a monthly Advertising Fund Fee for deposit into a system marketing fund (the "Advertising Fund"). We may increase the Advertising Fund Fee at any time; however, the Advertising Fund Fee will not exceed 3% of Gross Revenue. If collected, you will pay the Advertising Fund Fee in the same manner and at the same time as the Royalty Fee. If collected, we will place all Advertising Fund Fees we receive in the Advertising Fund and we will manage such Advertising Fund. 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 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–33)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate FDD, Christies International Real Estate does not currently have an advertising fund. However, Christies International Real Estate retains the right to establish one in the future.
If an advertising fund is created, franchisees may be required to contribute a monthly Advertising Fund Fee, which will not exceed 3% of gross revenue. These fees would be paid in the same manner and at the same time as the royalty fee. Any Christies International Real Estate owned businesses or those operated by its affiliates would not be required to contribute to the Advertising Fund.
If established, the advertising fund will be used for the general promotion of the brand and system, including expenses related to a call center, market research, customer retention, incentive programs, sales development, media planning and buying, advertising materials, public relations, technology investments, and digital marketing. Christies International Real Estate may also use up to 10% of the fund to solicit new franchise sales. Franchisees should note that the advertising fund is not a trust or escrow account, and Christies International Real Estate has no fiduciary obligations regarding the fund. Christies International Real Estate will provide an annual unaudited statement of the fund's receipts and disbursements upon written request.