What happens to any end-of-year surpluses in the Christies International Real Estate Advertising Fund?

According to the 2025 Christies International Real Estate FDD, any surpluses or shortages in the Advertising Fund at the end of a fiscal year will be carried over to the following year. This means that if the Advertising Fund has more money than it spent in a given year, the extra funds will be available for use in the next year's advertising and promotional activities. Conversely, if the fund has a shortfall, that deficit will need to be covered in the subsequent year.

This policy provides a degree of financial flexibility for Christies International Real Estate in managing its advertising efforts. It allows the company to adjust its spending based on the availability of funds and to plan for future campaigns without being strictly limited to the current year's contributions. However, franchisees should be aware that the franchisor is not obligated to spend advertising funds in any specific local market or guarantee direct benefits to individual franchisees.

It is also important to note that the Advertising Fund is not a trust or escrow account, and Christies International Real Estate has no fiduciary obligations regarding the fund. This means that the franchisor has considerable discretion in how the funds are managed and spent, although they typically use the funds for the general promotion of the Marks and the System. Franchisees have the right to request an annual unaudited statement of the receipts and disbursements of the Advertising Fund to stay informed about how the money is being used.