What actions must an Aerus franchisee take immediately upon expiration or termination of the franchise agreement regarding the operation of the franchised business?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
m Sales Requirement set forth in Schedule 4 attached hereto. The existence, substance and process of any such system would be the sole and exclusive discretion of Company and may be implemented, revoked or modified (upon reasonable notice to Franchisee) at any time and from time to time.
E. Upon expiration or termination of this Agreement, Franchisee and Franchisee's principals shall:
(1) Immediately cease operation of the Franchised Business and any use of the Marks, Software and Administration Systems or the Customer Data for any reason or purpose; promptly remove all signs, markings, or other writings and, immediately discontinue all advertising or publicity, that tend to indicate that Franchisee is a franchisee of Company or seller of Products; and immediately discontinue all advertising or publicity and take all actions necessary to comply with the foregoing, including instructing all publishers of any telephone directory or listing not to renew, repeat or insert any listing or advertisement using the word "Aerus", "Lux" or "Electrolux" or any other term or identifier associating Franchisee with Company.
(2) Send written notice to all Outlet Licensees and Sales Representatives with whom Franchisee has been dealing that any license granted to or agreement made with such is terminated, and that such Outlet Licensees and Sales Representatives must also take all other steps herein required of Franchisee under this Section.
(3) Cooperate with Company in perfecting an assignment of all telephone numbers used at an Approved Location in connection with the sales of Products hereunder or otherwise known or identified as numbers associated with Company, the Products or the Marks to and into the name of Company or its nominee, taking all action necessary to effect the intent of the foregoing.
(4) Immediately cause the cancellation or termination of any assumed name filings for the Approved Name or otherwise including the name "Aerus", "Lux" or "Electrolux" or any of the Marks.
(5) Immediately return to Company and Company's Affiliates all items of personal property that are then owned by Company or Company's Affiliates, including Consigned Products and any equipment and supplies to which Company or Company's Affiliates hold title.
(6) Promptly pay all sums owing to Company, Company's Affiliates, lessors and other trade creditors.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, upon expiration or termination of the franchise agreement, the franchisee and their principals must take several immediate actions. They must cease operating the franchised business and discontinue any use of Aerus's marks, software, administration systems, or customer data. This includes promptly removing all signs and markings that indicate they are an Aerus franchisee and discontinuing all related advertising and publicity. Franchisees must also instruct publishers of telephone directories or listings to not renew or repeat any advertisements using the names "Aerus", "Lux" or "Electrolux".
Additionally, the Aerus franchisee is required to send written notice to all Outlet Licensees and Sales Representatives they have been dealing with, informing them that any licenses or agreements are terminated and that these parties must also comply with the termination requirements. The franchisee must also cooperate with Aerus to transfer all telephone numbers used in connection with the business to Aerus or its nominee. This ensures that customers trying to contact the business will reach Aerus and not the former franchisee.
Furthermore, the franchisee must immediately cancel or terminate any assumed name filings that include the names "Aerus", "Lux" or "Electrolux". They must also return all personal property owned by Aerus or its affiliates, including consigned products, equipment, and supplies. The franchisee is also obligated to deliver all information, including customer data, confidential information, manuals, agreements, invoices, and other materials related to the operation of the franchised business to Aerus. Finally, the franchisee must comply with non-competition covenants and restrictions on confidential information as outlined in the franchise agreement.