What happens if a supplier prohibits the assignment of Allowances to Christies International Real Estate?
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 typically required to assign all rights to Allowances (payments, manufacturing allowances, marketing allowances, rebates, credits, monies, or benefits offered by suppliers) to Christies International Real Estate or their designee. However, this assignment is not absolute. The document specifies that the assignment occurs "unless otherwise prohibited by the supplier."
This means that if a particular supplier has a policy that forbids the assignment of these Allowances, the franchisee is not obligated to assign them to Christies International Real Estate in that specific case. The franchisor acknowledges this limitation and states they are authorized to collect and retain Allowances "without restriction (unless otherwise prohibited by the supplier)." This suggests that Christies International Real Estate recognizes the legal or contractual restrictions some suppliers may impose.
For a prospective franchisee, this clause offers a degree of protection. It ensures that franchisees are not in breach of contract with suppliers who disallow assignment of Allowances. However, it also means that the franchisee may need to manage those Allowances separately, rather than having Christies International Real Estate handle them. It is important to note that during the last fiscal year that ended December 31, 2024, Christies International Real Estate did not receive any Allowances from the sale of required products and services to its Affiliates.