factual

Does Christies International Real Estate currently collect an Advertising Fund Fee?

Christies_International_Real_Estate Franchise · 2025 FDD

Answer from 2025 FDD Document

Fee (Note 1) Amount (Note 2) Due Date Remarks
Royalty Fee 3% to 6% of Gross Revenues, depending on whether your Protected Territory is exclusive and other factors Monthly Paid via Electronic Funds Transfer (EFT). You and we will negotiate your Royalty Fee, which will vary based on whether your Protected Territory is exclusive and other factors. It will range between 3% and 6%.
Advertising Fund Fee Currently not collected If collected, monthly with the Royalty Fee We do not currently have an Advertising Fund. If implemented, the Advertising Fund Fee will not exceed 3% of Gross Revenues.

Source: Item 6 — OTHER FEES (FDD pages 14–17)

What This Means (2025 FDD)

According to Christies International Real Estate's 2025 Franchise Disclosure Document, the brand does not currently collect an Advertising Fund Fee. The FDD specifies that if an Advertising Fund Fee is implemented in the future, it will not exceed 3% of Gross Revenues. This fee, if collected, would be paid monthly along with the Royalty Fee.

For a prospective franchisee, the absence of a current advertising fee could be seen as a short-term financial benefit, reducing initial operating costs. However, Christies International Real Estate retains the right to implement this fee in the future, up to a maximum of 3% of Gross Revenues. Franchisees should be prepared for this potential change and factor it into their long-term financial planning.

Many franchise systems have advertising fees to promote the brand, so the lack of one for Christies International Real Estate is notable. It is important for prospective franchisees to understand Christies International Real Estate's marketing strategy and how the brand supports its franchisees in attracting clients without a dedicated advertising fund. It would be prudent to inquire about the criteria and process Christies International Real Estate would use to determine if and when to implement the advertising fee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.