Does Aerus have a fiduciary obligation in connection with its maintenance or administration of the System Media Fund?

According to Aerus's 2025 Franchise Disclosure Document, Aerus does not have a fiduciary obligation in connection with its maintenance or administration of the System Media Fund. The document states that the System Media Fund is operated solely as a conduit for the collection and expenditure of advertising contributions.

This means that while Aerus manages the fund, it is not held to the same legal standard of care as a fiduciary. A fiduciary obligation typically requires a party to act in the best interests of another party, putting their interests ahead of their own. The absence of this obligation gives Aerus more discretion in how the System Media Fund is managed and spent.

Despite not having a fiduciary duty, Aerus outlines certain practices for managing the System Media Fund. All sums paid by franchisees are maintained in a separate account, and the funds are intended to be used for advertising and promotional purposes. Aerus is also permitted to take a management fee not to exceed 5% of the aggregate amount of the System Media Fund Fees collected during a calendar year. While the fund is intended to be perpetual, Aerus retains the right to terminate it, but only after all monies have been expended for advertising and/or promotional purposes.

Prospective franchisees should consider the implications of Aerus not having a fiduciary duty, as it provides Aerus with more flexibility in managing the System Media Fund. Franchisees may want to inquire about the historical performance of the fund, how the funds are allocated, and the specific criteria used to determine advertising and promotional strategies.