What is the purpose of the Aerus System Media Fund?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
AAA. "System" has the meaning assigned in Recitals B and C.
BBB. "System Media Fund" means a fund controlled by Company, designed to facilitate media market spending that benefits the System (as defined in Recital B, without regard to Recital C).
CCC. "System Media Fund Fee" means a fee due from Franchisee as required by Company upon implementation of the System Media Fund, in an amount specified in Schedule 3 attached hereto.
DDD. "Term" has the meaning assigned in Section 2.
EEE. "Transfer" means any sale, assignment, grant, conveyance, pledge, hypothecation or encumbrance, whether directly or indirectly made, attempted or completed.
FFF. "Transfer Fee" means the fee payable by Franchisee or any of Franchisee's principals who desires to transfer, by assignment or otherwise, all or substantially all of the assets of Franchisee, or any of their interest in Franchisee, this Agreement or the franchise or license granted hereunder, in an amount specified in Schedule 3, attached hereto.
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.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the System Media Fund is designed to facilitate media market spending that benefits the Aerus system. The fund is controlled by Aerus and is intended to cover the costs of maintaining, directing, preparing, and conducting media campaigns, as well as regional and national advertising for the benefit of the Aerus system.
Franchisees are required to pay a System Media Fund Fee, and Aerus has sole discretion over advertising and promotional programs, including approving creative concepts, materials, and media used. The funds 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.
Aerus maintains the System Media Fund in a separate account and can use the funds to cover administrative costs and overhead related to managing the fund and advertising programs. Aerus is also permitted to take a management fee of up to 5% of the total System Media Fund Fees collected each calendar year. While the intention is to expend all contributions and earnings within the taxable year, any excess amounts are carried over and used in subsequent years, with priority given to accumulated earnings from previous years.