To whom does a Christies International Real Estate franchisee assign their right, title, and interest in Allowances?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates have the right to receive, collect and retain payments, manufacturing allowances, marketing allowances, rebates, credits, monies, or benefits (collectively, "Allowances") offered by our suppliers to you or to us or our affiliates based upon your and/or other Affiliates' purchases of products and services. These Allowances may be based on individual or network-wide purchases of products and services. You assign to us or our designee all of your right, title and interest in and to any and all such Allowances and authorize us or our designee to collect and retain any or all such Allowances without restriction (unless otherwise prohibited by the supplier). We may use all amounts so received for any purpose we and our affiliates deem appropriate.
During our last fiscal year that ended December 31, 2024, we did not receive any Allowances from the sale of required products and services to our Affiliates.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, franchisees are required to assign their rights, title, and interest in Allowances to Christies International Real Estate or its designee. These Allowances include payments, manufacturing allowances, marketing allowances, rebates, credits, monies, or benefits offered by suppliers based on purchases of products and services made by the franchisee or other affiliates.
This means that any financial benefits or incentives that a Christies International Real Estate franchisee might be eligible for from suppliers due to their purchases are instead directed to Christies International Real Estate or an entity they designate. The document specifies that Christies International Real Estate can use these collected amounts for any purpose they deem appropriate.
For a prospective franchisee, this represents a loss of potential revenue or cost savings. While the FDD states that Christies International Real Estate did not receive any Allowances during the fiscal year ending December 31, 2024, this policy means that franchisees will not directly benefit from supplier incentives, which could impact their profitability. Franchisees should consider this when evaluating the overall financial opportunity and discuss with existing franchisees to understand the practical implications of this policy.