Does Aerus assume a fiduciary obligation to franchisees for maintaining the System Media Fund?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The System Media Fund is not and will not be used for ordinary operating expenses of our company, and it is not a trust. We do not assume any fiduciary obligation to you or any other franchisee for maintaining, directing, or administering the System Media Fund or for any other reason. We will prepare annually a statement of the operations of the System Media Fund as shown on the books of the System Media Fund, and will make it available to you on an annual basis, upon written request. This annual statement is not required to be audited, but we may choose to provide an audited statement.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 36–43)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, Aerus does not assume a fiduciary obligation to franchisees regarding the System Media Fund. The document explicitly states that the System Media Fund is not a trust, and Aerus does not have a fiduciary duty to franchisees for maintaining, directing, or administering the fund. However, Aerus will maintain separate bookkeeping accounts for the System Media Fund.
Aerus retains the right to direct all advertising programs and aspects of the System Media Fund. While the fund aims to enhance the recognition of Aerus's marks and programs, Aerus is not obligated to ensure that expenditures benefit each franchisee directly or proportionately to their contribution, nor are they required to spend a specific amount in a franchisee's area. The System Media Fund will cover the costs of advertising, marketing, and promotional activities that Aerus believes will enhance the image of its programs.
Franchisees are required to contribute to the System Media Fund as specified by Aerus after a 30-day notice. All contributions will be kept in a separate account from Aerus's other funds. Aerus can charge the fund for reasonable administrative costs and overhead related to the fund's direction and marketing programs. An annual statement of the System Media Fund's operations will be prepared and made available to franchisees upon written request, although this statement is not required to be audited.
Aerus maintains the right to terminate the System Media Fund, but only after all monies have been spent on marketing or promotional purposes. While Aerus does not anticipate using the fund for franchise sales solicitations, they may reference franchise availability in advertising materials. Franchisees should be aware that Aerus is not obligated to spend any particular amount on marketing in their specific area and that unspent amounts at the end of the fiscal year will be carried over for future expenditure.