What right does Christies International Real Estate have regarding Allowances offered by suppliers?
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 and its affiliates possess the right to receive, collect, and retain payments, manufacturing allowances, marketing allowances, rebates, credits, monies, or benefits, which are collectively termed "Allowances." These Allowances may stem from franchisee purchases of products and services, either on an individual basis or across the entire Christies International Real Estate network.
As a Christies International Real Estate franchisee, you are required to assign all rights, titles, and interests in these Allowances to Christies International Real Estate or their designee. This authorization allows Christies International Real Estate to collect and retain these Allowances without any restrictions, unless the supplier explicitly prohibits such an arrangement. The FDD specifies that Christies International Real Estate can utilize these received amounts for any purpose they or their affiliates deem appropriate.
For the fiscal year ending December 31, 2024, Christies International Real Estate states that they did not receive any Allowances from the sale of required products and services to their Affiliates. However, the franchise agreement stipulates that they have the right to collect these in the future. This arrangement is not uncommon in franchising, where franchisors often negotiate volume discounts or rebates with suppliers due to the collective purchasing power of their franchise network. Franchisees should consider this when evaluating the overall cost structure and potential profitability of a Christies International Real Estate franchise.