Can Aerus require franchisees to have their advertising placed by the company or a designated third party?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Franchisee shall advertise, at all times, in the manner designated by Company from time to time in the Manuals or otherwise in writing, using formats or templates approved in advance by Company. Company shall have the right to require that all such advertising be placed by Company or a third party designated by Company in accordance with such procedures as Company may designate in the Manuals or otherwise in writing, and at Franchisee's expense. Company shall have the right to designate the size, form and content of such advertising and that Franchisee utilize a listing which identifies other Aerus Businesses in addition to its own.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus has the right to mandate that franchisees' advertising be placed either by the company itself or by a third party that Aerus designates. This advertising placement would be at the franchisee's expense. Aerus also retains the authority to determine the size, form, and content of the advertising. Additionally, Aerus can require franchisees to include listings that identify other Aerus businesses alongside their own.
This requirement means that an Aerus franchisee might not have full control over their advertising strategies and expenditures. They would need to adhere to the formats and templates approved by Aerus and potentially relinquish control over ad placement to Aerus or a designated third party. The franchisee is responsible for the costs associated with this advertising, regardless of who places it.
This level of control is not uncommon in franchising, as franchisors often want to maintain brand consistency and ensure effective advertising campaigns. However, it's crucial for prospective Aerus franchisees to understand the potential costs and limitations associated with this requirement. They should inquire about the typical advertising expenses, the criteria Aerus uses for selecting third-party advertising agencies, and the degree of input franchisees have in the advertising process.