Under what condition can Aerus terminate the System Media Fund?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) Although the System Media Fund is intended to be of perpetual duration, Company maintains the right to terminate the System Media Fund.
The System Media Fund shall not be terminated, however, until all monies in the System Media Fund have been expended for advertising and/or promotional purposes.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, while the System Media Fund is intended to be of perpetual duration, Aerus retains the right to terminate it. However, Aerus can only terminate the System Media Fund after all the money within the fund has been spent on advertising and/or promotional activities.
This condition protects franchisees by ensuring that all contributions to the System Media Fund are used for their intended purpose before the fund can be terminated. It prevents Aerus from simply dissolving the fund and retaining the unspent balance.
This provision is fairly standard in franchising, as advertising funds are typically meant to benefit the entire franchise system. Franchisees should confirm with Aerus how often the fund's financials are reported and what mechanisms are in place to ensure transparency in fund management and spending.