Can the System Media Fund and its earnings benefit Aerus?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
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- We will have the right to charge the System Media Fund for the reasonable administrative costs and overhead that we incur in activities reasonably related to the direction and implementation of the System Media Fund and marketing programs for you and the System (for example, costs of personnel for creating and implementing, associated overhead, advertising, merchandising, promotional and marketing programs, and accounting services reasonably related to the operation and functions of the System Media Fund). The System Media Fund and its earnings will not otherwise inure to our benefit or be used to solicit the sale of franchises. We or our designee will maintain separate bookkeeping accounts for the System Media Fund.
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- The System Media Fund is not and will not be used for ordinary operating expenses of our company, and it is not a trust. We do not assume any fiduciary obligation to you or any other franchisee for maintaining, directing, or administering the System Media Fund or for any other reason. We will prepare annually a statement of the operations of the System Media Fund as shown on the books of the System Media Fund, and will make it available to you on an annual basis, upon written request. This annual statement is not required to be audited, but we may choose to provide an audited statement.
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- Although the System Media Fund is intended to be of perpetual duration, we maintain the right to terminate the System Media Fund. The System Media Fund will not be terminated, however, until all monies in the System Media Fund have been spent for marketing or promotional purposes.
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- We do not anticipate using any portion of the System Media Fund for marketing that is principally a solicitation for the sale of franchises. We may reference that franchises are available in advertising materials or Websites (as defined below) created using System Media Fund contributions. We may receive payment for providing goods or services to the System Media Fund. As described above, we are not required to spend any particular amount on marketing in the area where your Franchised Business is located. As also described above, if amounts are unspent in the System Media Fund at fiscal year-end, those
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, the System Media Fund and its earnings are generally not intended to directly benefit Aerus, but Aerus can receive payments for providing goods or services to the fund. Aerus has the right to charge the System Media Fund for reasonable administrative costs and overhead incurred in activities related to the direction and implementation of the System Media Fund and marketing programs for franchisees. These costs can include personnel, advertising, merchandising, promotional and marketing programs, and accounting services.
The System Media Fund is not used for Aerus's ordinary operating expenses and is not considered a trust. Aerus does not assume any fiduciary obligation to franchisees for maintaining or administering the fund. Aerus will prepare an annual statement of the fund's operations and make it available to franchisees upon written request. This statement is not required to be audited, although Aerus may choose to provide an audited statement.
While the System Media Fund is intended to be perpetual, Aerus retains the right to terminate it, but only after all monies have been spent on marketing or promotional purposes. Aerus does not anticipate using the fund for marketing that primarily solicits the sale of franchises, although advertising materials may reference that franchises are available. Franchisees are required to contribute to the System Media Fund if it is established, and Aerus, including its company-owned outlets, will also participate in the fund at the same rate and terms as franchisees.