If Aerus establishes a System Media Fund, where can a franchisee find their obligations regarding contributions?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
The System Media Fund shall be organized for the purposes of, and all contributions thereto and any earnings thereon shall be used exclusively to meet the costs for maintaining, directing, preparing and conducting media campaigns, regional and national advertising for the benefit of the System.
The System Media Fund can be implemented on a national, local or regional basis.
Upon establishment of the System Media Fund by Company, Franchisee's obligations shall be as set forth in Addendum B, attached hereto.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, if Aerus establishes a System Media Fund, a franchisee's obligations regarding contributions will be detailed in Addendum B of the FDD. The System Media Fund is designed to facilitate media market spending that benefits the Aerus system.
Addendum B outlines specific details regarding the System Media Fund. Each month, franchisees are required to pay Aerus the System Media Fund Fee. Aerus, or its designee, will maintain and administer the fund, overseeing all advertising and promotional programs. Aerus has the sole discretion to approve or disapprove creative concepts, materials, and media used in these programs, including their placement and allocation.
The System Media Fund aims to maximize public recognition and acceptance of the Aerus system and its Marks. The funds may be used to purchase various forms of media, such as internet, electronic, event, radio, television, and print, on a local, regional, or national basis. All sums paid by franchisees to the System Media Fund will be kept in a separate account from Aerus's other monies.
These funds will cover Aerus's reasonable administrative costs and overhead related to managing the System Media Fund and advertising programs. Aerus is also permitted to take a management fee, which cannot exceed 5% of the total System Media Fund Fees collected during a calendar year. Contributions to the System Media Fund and any earnings are intended to be spent on advertising and promotional purposes within the taxable year they are received. If excess amounts remain, they will be used in subsequent years, following a specific order of accumulated earnings, current year earnings, and finally, contributions.