Can Aerus designate the manner in which franchisees must advertise?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. All advertising or marketing to be undertaken by Franchisee shall comply with Company's standards, specifications and procedures as specifically described herein and in the Manuals. Franchisee shall submit a sample of each type of advertising material to Company for Company's approval prior to use. Franchisee may not use any advertising material, unless such material has been approved in writing by Company and has not subsequently been disapproved by Company. Franchisee shall immediately discontinue the use of any advertising materials which Company subsequently disapproves. No advertising, marketing or promotions material may be placed outside the Area of Responsibility, and Franchisee shall not place or otherwise conduct any national or international advertising of any kind.
- B. Franchisee shall install and, at all times during the term of this Agreement, maintain an outdoor sign in a prominent location in accordance with Company's sign specifications in effect from time to time, or as approved, in writing, by Company, unless prohibited from doing so by applicable laws and regulations.
- C. Franchisee shall advertise, at all times in the manner designated by Company from time to time in the Manuals or otherwise in writing, using formats or templates approved in advance by Company. Company shall have the right to require that all such advertising be placed by Company or a third party designated by Company in accordance with such procedures as Company may designate in the Manuals or otherwise in writing, and at Franchisee's expense. Company shall have the right to designate the size, form and content of such advertising and that Franchisee utilize a listing which identifies other Aerus Businesses in addition to its own.
- D. Franchisee shall, in addition to the other requirements of this Section, expend each year the Minimum Local Advertising Expense on local advertising, public relations, and promotion in the Area of Responsibility. At the request of Company, Franchisee shall furnish, to Company, an accurate accounting of Franchisee's expenditure on local advertising, public relations, and promotion, in form and content satisfactory to Company.
- E. Company also reserves the right to assess the Franchisee for contributions to the System Media Fund.
The System Media Fund shall be designed to facilitate media market spending that benefits the System.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus has significant control over how its franchisees advertise. Aerus franchisees must adhere to the company's standards, specifications, and procedures for all advertising and marketing activities, as detailed in the manuals. Franchisees need to submit all advertising materials to Aerus for written approval before use and must immediately stop using any materials that Aerus subsequently disapproves. Franchisees are restricted from placing advertising outside their designated Area of Responsibility and cannot engage in national or international advertising.
Aerus also dictates the manner in which franchisees must advertise, specifying that advertising should be done in a way that Aerus designates from time to time, either in the manuals or in writing. The company pre-approves the formats or templates used. Aerus can also mandate that advertising be placed by Aerus itself or a third party that Aerus designates, with the franchisee bearing the expense. Aerus retains the right to determine the size, form, and content of the advertising, including requiring franchisees to include listings of other Aerus businesses in their advertising.
In addition to these controls, Aerus requires franchisees to spend a Minimum Local Advertising Expense each year on local advertising, public relations, and promotion within their Area of Responsibility. Franchisees must provide Aerus with an accurate accounting of these expenditures in a format that Aerus finds satisfactory. Aerus also reserves the right to assess franchisees for contributions to the System Media Fund, which is used to support media market spending that benefits the Aerus system.
These stipulations mean that prospective Aerus franchisees should be prepared to relinquish a considerable degree of autonomy over their advertising and marketing efforts. They should factor in the costs associated with mandatory advertising expenses and contributions to the System Media Fund when evaluating the financial viability of the franchise. It is important for potential franchisees to fully understand the specific advertising requirements and restrictions outlined in the manuals and franchise agreement before investing in an Aerus franchise.