What is the maximum management fee that Aerus can take from the System Media Fund each year?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
The funds shall be used to defray any of Company's reasonable administrative costs and overhead as Company may incur in activities reasonably related to the administration or direction of the System Media Fund and advertising programs for franchisees and the System.
Furthermore, Company shall be permitted a management fee not to exceed 5% of the aggregate amount of the System Media Fund Fees collected during a calendar year.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus is permitted to take a management fee from the System Media Fund. This fee is capped at a maximum of 5% of the total System Media Fund Fees collected during each calendar year.
This means that if franchisees contribute $100,000 to the System Media Fund in a year, Aerus can take up to $5,000 as a management fee to cover administrative costs and overhead related to managing the fund and advertising programs. The remaining funds must be used for advertising and promotional activities.
It is important to note that the System Media Fund is intended to be used solely for advertising and promotional purposes, and Aerus does not have a fiduciary obligation in connection with its maintenance or administration. While the fund is intended to be perpetual, Aerus retains the right to terminate it, provided all monies in the fund have been spent on advertising and promotion.