What is my responsibility regarding the balance in my account for payments to Christies International Real Estate?

You agree to purchase and maintain in force, at your expense, all of the insurance coverage we require in the types and amounts described in the Operations Manual.

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.

The Advertising Fund will pay expenses in connection with the general promotion of the Marks and the System, which may include, but are not limited to, the development and operation of a call center; market research; customer retention; incentive programs; sales development programs; media planning; media buying fees; creating and producing advertising materials; outside advertising agency fees for creating advertising programs; public relation activities; outside public relations agency fees; technology investments; digital marketing; and reimbursing us the costs of administering the Advertising Fund.

Additionally, we may use up to ten percent (10%) of the Advertising Fund to solicit new franchisees.

The Advertising Fund is not a trust or escrow account, and we have no fiduciary obligations regarding the Advertising Fund.

We cannot ensure that any individual franchisees will benefit directly or on a pro rata basis from the future placement of any such advertising in its local market.

We will determine the methods of advertising, media employed, and scope, contents, terms and conditions of advertising, marketing, promotional and public relations campaigns, and programs.

Upon written request, we will provide you an annual unaudited statement of the receipts and disbursements of the Advertising Fund for the most recent calendar year.

Any end-of-year surpluses or shortages in the Advertising Fund in a given year will carry over to the next year.

In order to stay current on all programs, processes, procedures and other information relating to the operation of your CHRISTIE'S INTERNATIONAL REAL ESTATE business, you or a senior representative from your leadership team of whom we approve must attend any annual affiliate conference or other conference that we sponsor or designate.

You must pay to us our then-current conference fee and you are responsible for all travel and living expenses for you, your owners, brokers, agents and employees.

If you fail to attend the annual conference without our prior written consent, you must pay our then-current fee for two people for failing to attend the conference.

Source: Item 23 — RECEIPT (FDD pages 54–177)