Which items in the Christies International Real Estate Disclosure Document discuss fee obligations?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.1. Advertising Fund. We reserve the right to require that you to pay a monthly advertising fee ("Advertising Fund Fee") for deposit into a system marketing fund (the "Advertising Fund").
As of the Effective Date, we have not established an Advertising Fund, and we do not collect the Advertising Fund Fee.
We may implement, begin collecting, and increase the Advertising Fund Fee at any time upon written notice to you; however, the Advertising Fund Fee will not exceed three percent (3%) of Gross Revenue.
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.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 24–26)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate Franchise Disclosure Document, Item 7.1 discusses the advertising fund fee. Christies International Real Estate reserves the right to require franchisees to pay a monthly advertising fee for deposit into a system marketing fund. 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.
Christies International Real Estate may implement, begin collecting, and increase the advertising fund fee at any time with written notice to the franchisee. However, the advertising fund fee will not exceed three percent of gross revenue. If Christies International Real Estate begins collecting the advertising fund fee, franchisees will pay the advertising fund fee in the same manner and at the same time as the royalty fee.
Christies International Real Estate will place all advertising fund fees received in the advertising fund and manage the fund. Any Christies International Real Estate businesses operated by them or their affiliates will not be required to contribute to the advertising fund. This means that franchisees may be required to contribute to the advertising fund while corporate-owned locations are not, which could create an uneven playing field in terms of marketing resources.