factual

What does 'Affiliate' mean in the context of an Aerus franchise agreement?

Aerus Franchise · 2025 FDD

Answer from 2025 FDD Document

  • C. "Affiliate" means any entity or person that is, directly or indirectly, controlled by, controlling or under common control with a referenced person or entity.

Source: Item 23 — Receipts (FDD pages 74–305)

What This Means (2025 FDD)

According to Aerus's 2025 Franchise Disclosure Document, an 'Affiliate' refers to any entity or person that directly or indirectly controls, is controlled by, or is under common control with another person or entity. This definition is important for prospective franchisees to understand because it clarifies the scope of Aerus's business network and the relationships between different entities associated with the brand.

This definition has several implications for franchisees. For example, Aerus and its affiliates may operate existing businesses and systems, and may in the future establish and operate new businesses and systems, including Aerus Businesses, under the same and other assumed names, trade names and trademarks as the Marks, which businesses and systems may offer or sell products and services similar or identical to the Products, and may do so (or grant licenses or franchises for third-parties to do so) within any part of the Area of Responsibility. Additionally, Aerus or its affiliates may consign products for sale through the Franchised Business.

Understanding the concept of 'Affiliate' is crucial for franchisees as it defines the boundaries of Aerus's network and the potential interactions and relationships a franchisee might have with related entities. It is a common practice in franchising to define such relationships to clarify responsibilities, rights, and potential conflicts of interest.

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.