Does Christies International Real Estate have fiduciary obligations regarding the Advertising Fund?

t, Section 7.2).

Advertising Council, Cooperative. We do not have an advertising council or cooperative.

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

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–33)