When administering the Aerus System Media Fund, is Aerus obligated to make expenditures equivalent or proportionate to a franchisee's contribution?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
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- We or a designee will have the right to direct all advertising programs, as well as all aspects of any System Media Fund, including the concept, materials, and media used in the programs and the placement and allocation of the programs. The System Media Fund is intended to maximize the general public's recognition of the Marks and the Programs; and we and our designee are not obligated, in administering the System Media Fund, to make expenditures for you which are equivalent or proportionate to your contribution, to ensure that any particular franchisee benefits directly or pro rata from expenditures by the System Media Fund, or to expend any particular amount of money in your Area of Responsibility.
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- The System Media Fund will be used only (except as otherwise provided below) to meet any and all costs of maintaining, administering, directing, conducting, creating, and/or otherwise preparing advertising, marketing, public relations and promotional programs and materials, and any other activities that we believe will enhance the image of the Programs.
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- We have the right to use System Media Fund contributions to, among other things, prepare and/or conduct media advertising campaigns, social media campaigns, direct mail advertising, marketing surveys and other public relations activities; employ advertising and/or public relations agencies to assist in doing so; purchase promotional items; develop new or modified trade dress and marks; point-of-purchase (POP) materials; design and photographs; conduct and administer visual merchandising, and other merchandising programs; purchase media space or time (including all associated fees and expenses); administer regional and multi-regional marketing and advertising programs; engage in or retain third parties to engage in market research and customer satisfaction surveys; develop and implement customer loyalty and gift card programs; customer retention programs; offset costs associated with the creative development of, and actual production associated
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 36–43)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus is not obligated to make expenditures for a franchisee that are equivalent or proportionate to the franchisee's contribution to the System Media Fund. Aerus has the right to direct all advertising programs and all aspects of the System Media Fund. The System Media Fund is intended to maximize the general public's recognition of the marks and the programs. Aerus is not obligated to ensure that any particular franchisee benefits directly or pro rata from expenditures by the System Media Fund, or to expend any particular amount of money in a franchisee's Area of Responsibility.
The System Media Fund will be used to meet the costs of advertising, marketing, public relations, and promotional programs and materials. These activities are intended to enhance the image of Aerus's programs. Aerus has the right to use System Media Fund contributions to prepare and conduct media advertising campaigns, social media campaigns, direct mail advertising, marketing surveys, and other public relations activities. They may also employ advertising and/or public relations agencies, purchase promotional items, develop new or modified trade dress and marks, and conduct visual merchandising programs.
Aerus will maintain all sums paid to the System Media Fund in an account separate from their other monies. Aerus has the right to charge the System Media Fund for the reasonable administrative costs and overhead that they incur in activities related to the direction and implementation of the System Media Fund and marketing programs. The System Media Fund is not and will not be used for ordinary operating expenses of Aerus, and it is not a trust. Aerus does not assume any fiduciary obligation to franchisees for maintaining, directing, or administering the System Media Fund.
Aerus will prepare annually a statement of the operations of the System Media Fund and will make it available to franchisees on an annual basis, upon written request. The annual statement is not required to be audited, but Aerus may choose to provide an audited statement. Although the System Media Fund is intended to be of perpetual duration, Aerus maintains the right to terminate the System Media Fund, but not until all monies in the System Media Fund have been spent for marketing or promotional purposes.