How often must an Aerus franchisee pay the System Media Fund Fee?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM B
SYSTEM MEDIA FUND DETAILS
(1) Each month, Franchisee shall pay to Company the System Media Fund Fee.
(2) Franchisee agrees that the System Media Fund shall be maintained and administered by Company or its designee, as follows:
(a) Company shall oversee all advertising and promotional programs with sole discretion to approve or disapprove the creative concepts, materials and media used in such programs, and the placement and allocation thereof.
Franchisee agrees and acknowledges that the System Media Fund is intended to maximize general public recognition and acceptance of the System and the Marks.
(b) The System Media Fund, all contributions thereto, and any earnings thereon may be used by Company to purchase, among other things, Internet, electronic, event, radio, television, print or other media on a local, regional or national basis.
(c) All sums paid by Franchisee to the System Media Fund shall be maintained in an account separate from the other monies of Company.
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.
- (d) It is anticipated that all contributions to and earnings of the System Media Fund shall be expended for advertising and/or promotional purposes as described herein during the taxable year within which the contributions and earnings are received.
If, however, excess amounts remain in the System Media Fund at the end of such taxable year, all expenditures in the following taxable year(s) shall be made first out of accumulated earnings from previous years, next out of earnings in the current year, and finally from contributions.
- (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.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees are required to pay the System Media Fund Fee each month. This fee contributes to a fund that Aerus manages to facilitate media market spending that benefits the Aerus system. Aerus has sole discretion over the advertising and promotional programs, including approving creative concepts, materials, and media used.
The System Media Fund is intended to maximize public recognition and acceptance of the Aerus system and its marks. The funds collected can 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 are maintained in a separate account from Aerus's other monies.
These funds are used to cover Aerus's 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. While the System Media Fund is intended to be perpetual, Aerus retains the right to terminate it, but only after all the money in the fund has been spent on advertising and promotional activities.