factual

According to Aerus, what are 'Approved Customers'?

Aerus Franchise · 2025 FDD

Answer from 2025 FDD Document

The type of businesses operated under each of these programs possess each of the four following characteristics: (i) they are identified by the Marks, (ii) they are primarily engaged in the offer and sale of the Products, to either (a) non-commercial, residential buyers of the Products, or (b) commercial buyers who are not designated in the Manuals as "national accounts" and who are not engaged, and not anticipated to be engaged, in the sale of any cleaning, purification, health improvement or other consumer products or services, who, in either case, are purchasing the Products for such customer's use or consumption and not for re-sale ("Approved Customers"), (iii) they operate from one or more pre-authorized physical locations that serve as retail locations, service centers, recruiting and training centers (each, an "Approved Location"), and (iv) they operate in accordance with the System.

Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–15)

What This Means (2025 FDD)

According to Aerus's 2025 Franchise Disclosure Document, 'Approved Customers' are defined as either non-commercial, residential buyers of Aerus products, or commercial buyers who meet specific criteria. These commercial buyers must not be designated as "national accounts" in the Aerus manuals and must not be engaged in the sale of cleaning, purification, health improvement, or other consumer products or services. In either case, these customers are purchasing Aerus products for their own use or consumption, and not for resale. This definition applies to businesses operated under both the Standard and Associate Programs.

For a prospective Aerus franchisee, understanding the definition of 'Approved Customers' is crucial because it outlines the target market for their business. Franchisees must focus their sales and marketing efforts on reaching these specific customer segments. Selling to customers outside of this definition, such as national accounts or businesses intending to resell the products, may violate the terms of the franchise agreement.

The distinction between residential and commercial 'Approved Customers' also has implications for the franchisee's operational strategy. Residential customers may be reached through in-home demonstrations and local marketing efforts, while commercial customers may require a different approach, such as direct sales or business-to-business marketing. The FDD specifies that the businesses operated under the Standard and Associate programs are primarily engaged in the offer and sale of products to these 'Approved Customers'.

It is important for potential franchisees to carefully review the Aerus manuals to fully understand the criteria for 'Approved Customers,' particularly the definition of 'national accounts.' This will help them avoid potential conflicts and ensure they are targeting the correct customer base. Additionally, franchisees should seek clarification from Aerus regarding any uncertainties about the definition of 'Approved Customers' to ensure compliance with the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.