When must all other fees besides royalty fees be paid to Christies International Real Estate?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 ten percent (10%) of the Advertising Fund to solicit new franchisees.
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 franchisees 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.
Any end-of-year surpluses or shortages in the Advertising Fund in a given year will carry over to the next year.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, if the franchisor begins collecting an Advertising Fund Fee, franchisees will pay this fee in the same manner and at the same time as the Royalty Fee. As of the effective date of the FDD, Christies International Real Estate has not established an Advertising Fund and does not collect the Advertising Fund Fee. However, Christies International Real Estate may implement, begin collecting, and increase the Advertising Fund Fee at any time upon written notice to the franchisee. The Advertising Fund Fee will not exceed three percent (3%) of Gross Revenue.
This means that if Christies International Real Estate decides to implement an Advertising Fund Fee, franchisees will need to be prepared to pay this fee alongside their royalty fees. The timing and method of payment will be the same for both fees. It is important for prospective franchisees to be aware that this fee could be implemented at any time with written notice, and they should factor this potential cost into their financial projections.
Many franchise systems have advertising fees to promote the brand. The FDD states that the Advertising Fund will pay for expenses connected to the general promotion of the Marks and the System, including 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; and digital marketing. Christies International Real Estate may use up to ten percent (10%) of the Advertising Fund to solicit new franchisees.
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 upon written request. Any end-of-year surpluses or shortages in the Advertising Fund in a given year will carry over to the next year. Franchisees should inquire about the current plans for implementing the Advertising Fund Fee and how it will be managed to make an informed decision.