As of the Effective Date, has Christies International Real Estate established an Advertising Fund?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.1. Advertising Fund. We reserve the right to require that you to pay a monthly advertising fee ("Advertising Fund Fee") for deposit into a system marketing fund (the "Advertising Fund").
As of the Effective Date, we have not established an Advertising Fund, and we do not collect the Advertising Fund Fee.
We may implement, begin collecting, and increase the Advertising Fund Fee at any time upon written notice to you; however, the Advertising Fund Fee will not exceed three percent (3%) of Gross Revenue.
If we begin collecting the Advertising Fund Fee, you will pay the Advertising Fund Fee in the same manner and at the same time as the Royalty Fee.
If we begin collecting the Advertising Fund Fee, we will place all Advertising Fund Fees we receive in the Advertising Fund and we will manage such Advertising Fund.
Any CHRISTIE'S INTERNATIONAL REAL ESTATE businesses operated by us or our affiliates will not be required to contribute to the Advertising Fund.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate FDD, as of the Effective Date of the franchise agreement, Christies International Real Estate has not established an Advertising Fund, and therefore, does not collect an Advertising Fund Fee from franchisees. However, Christies International Real Estate retains the right to implement, begin collecting, and increase the Advertising Fund Fee at any time. They would provide written notice to franchisees before doing so. The Advertising Fund Fee will not exceed three percent (3%) of Gross Revenue.
If Christies International Real Estate begins collecting the Advertising Fund Fee, franchisees will be required to pay it in the same manner and at the same time as the Royalty Fee. All Advertising Fund Fees received will be placed in the Advertising Fund, which Christies International Real Estate will manage. Notably, any Christies International Real Estate businesses operated directly by the company or its affiliates will not be required to contribute to the Advertising Fund.
The Advertising Fund will be used for the general promotion of the Christies International Real Estate brand and system. This includes expenses related to a call center, market research, customer retention, incentive programs, sales development, media planning and buying, creating advertising materials, public relations, technology investments, and digital marketing. Christies International Real Estate may also use up to 10% of the Advertising Fund to solicit new franchisees. The FDD specifies 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 determines the advertising methods, media channels, and the scope and content of advertising campaigns. While franchisees may not directly benefit from advertising in their local market, Christies International Real Estate will provide an annual unaudited statement of the Advertising Fund's receipts and disbursements upon written request. Any surpluses or shortages in the Advertising Fund at the end of the year will be carried over to the next year.