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

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 corporate structure and the relationships between different entities that may be involved in the franchise system.

For a potential Aerus franchisee, this definition has several implications. It means that Aerus may have related companies or individuals who could potentially impact the franchise operation. For example, Aerus's affiliates could be involved in supplying products or services to franchisees, or they might operate competing businesses. Understanding these relationships is crucial for assessing potential conflicts of interest and evaluating the overall stability and support system of the franchise.

Furthermore, the definition of 'Affiliate' can affect the franchisee's rights and obligations under the franchise agreement. Aerus and its affiliates retain all rights not expressly granted to the franchisee. Aerus may introduce new products and services through the franchise, potentially requiring franchisees to execute additional agreements or pay royalties. Therefore, franchisees need to be aware of how Aerus's affiliates might influence the business and what rights Aerus retains regarding new business ventures or product offerings.

In summary, the 'Affiliate' definition in the Aerus franchise agreement is a standard legal term that defines the scope of related entities that could have a bearing on the franchisee's business. Prospective franchisees should carefully consider this definition and how it might affect their operations, relationships with suppliers, and overall business strategy.