What actions can Aerus take immediately upon terminating the agreement to preserve customer care and minimize disruption of the Franchised Business?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
(7) Immediately deliver to Company all information (including Customer Data in physical or electronic formats) and databases described herein, and all other Confidential Information (including the Manuals) and all agreements, invoices, and any and all other materials relating to the operation of the Franchised Business in Franchisee's possession or control (including any such information or materials in the possession of any Sales Representative or Outlet Licensee), and all copies thereof.
(8) Comply with the non-competition covenants and the restrictions on Confidential Information contained herein.
F.
Upon expiration or termination of this Agreement, Franchisee shall do any one or more of the following, at Company's option:
- (1) If Franchisee operates the Franchised Business premises under a lease with a third party or, with respect to any lease for equipment used in the operation of the Franchised Business, assign to Company any interest which Franchisee has in any lease or sublease for an Approved Location or any equipment related to the Franchised Business.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, several actions are required of the franchisee to ensure a smooth transition and minimize disruption. The franchisee must immediately cease operating the Franchised Business and discontinue any use of Aerus's trademarks, software, administration systems, or customer data. This includes promptly removing all signs and discontinuing advertising that identifies the franchisee as an Aerus franchisee. The franchisee must also instruct all publishers of telephone directories or listings to not renew or repeat any advertisements using the Aerus name or any other term associating the franchisee with Aerus. These steps are designed to prevent customer confusion and maintain brand consistency.
To further facilitate the transition, the franchisee is required to send written notice to all Outlet Licensees and Sales Representatives, informing them that their licenses or agreements are terminated and that they must also comply with the termination requirements. The franchisee must cooperate with Aerus to transfer all telephone numbers used at the Approved Location to Aerus or its nominee. Additionally, the franchisee must cancel or terminate any assumed name filings that include the Aerus name or marks. These actions ensure that Aerus can maintain communication channels with customers and prevent unauthorized use of the Aerus brand.
The franchisee is also obligated to return all personal property owned by Aerus or its affiliates, including consigned products, equipment, and supplies. All sums owed to Aerus, its affiliates, lessors, and other trade creditors must be promptly paid. The franchisee must deliver all information, including customer data, confidential information, manuals, agreements, invoices, and other materials related to the operation of the Franchised Business, to Aerus. Furthermore, the franchisee must comply with non-competition covenants and restrictions on confidential information. At Aerus's option, the franchisee may be required to assign any interest in leases for the Approved Location or equipment to Aerus, or sell or lease the business premises to Aerus at market value. These measures ensure that Aerus can quickly resume operations and continue serving customers with minimal disruption.