According to the Aerus franchise agreement, what is the relationship between the franchisee and Aerus?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
The right granted under this Agreement is only for the operation of the Franchised Business in accordance with this Agreement.
Franchisee is granted no rights of any kind in and to any other business or system that may now or hereafter be owned, operated or licensed by Company or any of its Affiliates.
Company and Company's Affiliates retain all rights not expressly granted herein.
Company reserves the right to provide new products and services under the System, and to require or permit new products and services to be provided, marketed, promoted, distributed or sold hereunder by Franchisee through the Franchised Business, and may, in connection therewith, without limitation (1) require Franchisee to execute an additional or supplemental agreement and (2) require the payment of a royalty.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, the relationship between Aerus and its franchisees is defined by the franchise agreement, which grants the franchisee the right to operate an Aerus Business under specific conditions. The franchisee's rights are limited to the operation of the franchised business in accordance with the agreement, and they do not extend to any other business or system owned, operated, or licensed by Aerus or its affiliates. Aerus retains all rights not expressly granted to the franchisee.
Aerus has the right to introduce new products and services under the Aerus system and can require or permit franchisees to provide, market, promote, distribute, or sell these new offerings through their franchised business. This may involve the franchisee executing additional agreements and paying royalties. The franchisee must operate the franchised business at an approved location and, if not already an existing Aerus Business, must open the business by the specified opening date. Any modifications or improvements to the premises required by Aerus are the franchisee's responsibility and expense.
The franchisee is expected to provide quality service to customers, fulfill promises made to them, develop a qualified sales team, and actively use customer data provided by Aerus. Compliance with the Aerus manuals, policies, and procedures, as well as all applicable laws, is mandatory. The franchisee must also avoid certain actions without Aerus's prior written approval, such as operating under a different name, selling outside the designated area, or selling non-approved products. Aerus and its affiliates can operate similar businesses under various names, even within the franchisee's area, except as limited by the rights granted in the agreement.
For franchisees that are business entities, the franchise agreement includes specific representations and warranties. The franchisee must be duly organized and authorized to operate an Aerus Business, with activities confined exclusively to this business unless Aerus provides written consent. The franchisee must provide certified copies of organizational documents and ensure that the individual executing the agreement is authorized and actively involved in the business's daily operations. The franchisee's entry into the agreement must not violate any existing obligations or laws. The franchise agreement will automatically terminate upon the expiration of its term, but can be terminated earlier if the franchisee breaches the agreement.