Is Aerus required to maintain the System Media Fund in perpetuity?

According to Aerus's 2025 Franchise Disclosure Document, the System Media Fund is intended to be of perpetual duration; however, Aerus retains the right to terminate it. The fund cannot be terminated until all monies within it have been spent on advertising and/or promotional activities. This fund is designed to facilitate media market spending that benefits the Aerus system. Upon the establishment of the System Media Fund by Aerus, the franchisee's obligations are detailed in Addendum B.

Aerus oversees all advertising and promotional programs, possessing the sole discretion to approve or disapprove creative concepts, materials, and media used in such programs, including their placement and allocation. The System Media Fund, including all contributions and earnings, can be used to purchase various media such as Internet, electronic, event, radio, television, and print on a local, regional, or national basis.

All sums paid by the franchisee to the System Media Fund are maintained in a separate account from Aerus's other monies. These funds are used to cover Aerus's reasonable administrative costs and overhead related to the administration or direction of the System Media Fund and advertising programs. Aerus is permitted a management fee not exceeding 5% of the aggregate amount of the System Media Fund Fees collected during a calendar year. While it is anticipated that all contributions to and earnings of the System Media Fund will be expended for advertising and/or promotional purposes during the taxable year they are received, any excess amounts remaining at the end of the year will be used first in the following year.

Aerus does not have a fiduciary obligation in connection with its maintenance or administration of the System Media Fund, which operates solely as a conduit for the collection and expenditure of advertising contributions. This means that while Aerus intends to use the fund for its stated purpose, it is not legally bound to act in the franchisees' best financial interests regarding the fund's management. Prospective franchisees should consider this when evaluating the level of control and oversight they have over their contributions to the System Media Fund.