Does Aerus have a fiduciary obligation in connection with the maintenance or administration of its System Media Fund?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) The System Media Fund is operated solely as a conduit for the collection and expenditure of advertising contributions for the purposes stated herein.
Company shall not have a fiduciary obligation in connection with its maintenance or administration of the System Media Fund.
- (f) Although the System Media Fund is intended to be of perpetual duration, Company maintains the right to terminate the System Media Fund.
The System Media Fund shall not be terminated, however, until all monies in the System Media Fund have been expended for advertising and/or promotional purposes.
- (g) The System Media Fund may be established for all franchise programs or separately for one or more of the franchise programs.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus does not have a fiduciary obligation in connection with the maintenance or administration of its 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.
Aerus maintains the right to terminate the System Media Fund, but only after all monies in the fund have been spent on advertising and promotional purposes. The System Media Fund may be established for all franchise programs or separately for one or more of the franchise programs.
This means that while Aerus controls the fund and decides how the money is spent, it is not legally bound to act in the franchisees' best financial interests regarding the fund. However, the funds must be used for advertising and promotional purposes. This arrangement is not uncommon in franchising, but franchisees should be aware that the franchisor's interests may not always align perfectly with their own when it comes to media fund expenditures.