Is there a limit to the amount Christies International Real Estate can compensate a public figure?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
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 may spend in any fiscal year an amount greater or less than the aggregate contributions to the Advertising Fund in that year.
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.
Source: Item 18 — PUBLIC FIGURES (FDD page 47)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the excerpts provided do not specify any limitations on the amount Christies International Real Estate can compensate a public figure. However, the FDD does mention the Advertising Fund, which is used for the general promotion of the Marks and the System. This fund can cover various expenses, including public relation activities and fees for outside public relations agencies.
While the Advertising Fund is used for promotional activities, Christies International Real Estate retains control over the fund's management and has no fiduciary obligations regarding it. They determine the advertising methods, media, and the scope of marketing campaigns. Up to 10% of the Advertising Fund can be used to solicit new franchisees.
A prospective franchisee should inquire directly with Christies International Real Estate about any policies or guidelines regarding compensation to public figures, as this information is not explicitly detailed in the provided FDD excerpts. Understanding these policies would be essential for budgeting and planning marketing activities.