Is Aerus obligated to ensure that advertising expenditures from the System Media Fund benefit each franchisee directly or proportionally to their contribution?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
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- We or a designee will have the right to direct all advertising programs, as well as all aspects of any System Media Fund, including the concept, materials, and media used in the programs and the placement and allocation of the programs. The System Media Fund is intended to maximize the general public's recognition of the Marks and the Programs; and we and our designee are not obligated, in administering the System Media Fund, to make expenditures for you which are equivalent or proportionate to your contribution, to ensure that any particular franchisee benefits directly or pro rata from expenditures by the System Media Fund, or to expend any particular amount of money in your Area of Responsibility.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 36–43)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus is not obligated to ensure that advertising expenditures from the System Media Fund benefit each franchisee directly or proportionally to their contribution. Aerus, or its designee, has the right to direct all advertising programs and aspects of the System Media Fund. The fund is intended to maximize public recognition of Aerus's marks and programs.
Aerus is not required to make expenditures for a franchisee that are equivalent or proportionate to their contribution. Nor is Aerus obligated to ensure that any particular franchisee benefits directly or pro rata from the System Media Fund's expenditures. Aerus also does not have to spend any particular amount of money in a franchisee's Area of Responsibility.
This means that while franchisees contribute to the System Media Fund, they have no guarantee of a direct or proportional return on their investment in terms of advertising spend in their specific area. The allocation of the System Media Fund is at Aerus's discretion, with the goal of maximizing overall brand recognition, not necessarily individual franchisee benefit. This is a fairly common practice in franchising, where advertising funds are often used for broad-based campaigns that may not have an equal impact on all franchisees.