Under what condition will the Aerus System Media Fund be terminated?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- 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.
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 is intended to be of perpetual duration; however, Aerus retains the right to terminate it. The critical condition for termination is that all monies within the System Media Fund must be fully spent on marketing or promotional purposes before the fund can be terminated.
This stipulation ensures that franchisees' contributions to the System Media Fund are used as intended for marketing and promotional activities. Aerus cannot simply dissolve the fund and reallocate the remaining money for other purposes. This provides a safeguard for franchisees, ensuring their contributions benefit the Aerus system through marketing efforts.
Prospective franchisees should note that while Aerus intends for the fund to be perpetual, the right to terminate it exists. Understanding how the fund is managed, how marketing strategies are chosen, and how the money is spent is crucial. Franchisees should also monitor the annual statements of the System Media Fund to ensure transparency and proper allocation of resources.