For what purpose may Christies International Real Estate use the Allowances received?
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, the company has broad discretion over the use of Allowances. Christies International Real Estate and its affiliates have the right to collect and retain payments, manufacturing allowances, marketing allowances, rebates, credits, monies, or benefits (collectively referred to as "Allowances") from suppliers based on franchisee purchases.
Christies International Real Estate franchisees assign all rights to these Allowances to Christies International Real Estate, granting the company the authority to collect and retain them without restriction, unless the supplier specifies otherwise. This means that Christies International Real Estate, not the franchisee, benefits directly from any rebates or incentives offered by suppliers.
The FDD states explicitly that Christies International Real Estate may use all amounts received from Allowances for any purpose they and their affiliates deem appropriate. This gives Christies International Real Estate significant flexibility in how they use these funds, and franchisees have no direct claim to or control over these Allowances. During the fiscal year ending December 31, 2024, Christies International Real Estate did not receive any Allowances from the sale of required products and services to its Affiliates.