Can Aerus require that all advertising be placed by them or a third party designated by them, at the franchisee's expense?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
You must make all commercially reasonable efforts to advertise and promote the Franchised Business in the Area of Responsibility, expending an amount equal to at least the Minimum Local Advertising Fee described in this Disclosure Document. You must submit samples of all advertising and promotional materials to us for approval prior to its use. No advertisement or promotional material may be placed outside the Area of Responsibility, and you may not conduct any national or international advertising of any kind, including any internet advertising (except in very limited circumstances and subject to our written approval). You must advertise at all times in the manner designated by us in the Manuals or otherwise in writing, using formats approved by us in advance; provided, that we may require that all such advertising be placed by us or a third party designated by us, and at your expense. (Franchise Agreement, Section 11).
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, franchisees are generally responsible for their own local advertising efforts within their designated area. Aerus requires franchisees to make commercially reasonable efforts to advertise and promote their franchised business, spending at least the Minimum Local Advertising Fee.
However, Aerus retains significant control over advertising. Franchisees must submit all advertising and promotional materials to Aerus for approval before use and must adhere to the advertising formats designated by Aerus in the manuals or in writing. Importantly, Aerus has the right to mandate that all advertising be placed either by Aerus itself or by a third party that Aerus designates. This placement would be at the franchisee's expense.
This means that while franchisees are expected to actively market their Aerus business, the franchisor can ultimately dictate how and where that advertising is executed, potentially impacting the franchisee's marketing budget and strategy. The franchisee bears the cost of this advertising, regardless of who places it. This level of control is not uncommon in franchising, as franchisors seek to maintain brand consistency and ensure effective marketing campaigns, but it does place a financial burden and strategic constraint on the franchisee.