Can Aerus or its affiliates operate similar businesses under the same or other names within the franchisee's Area of Responsibility?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing and without limiting the generality of the provisions contained in this Section, Franchisee acknowledges that Company and its Affiliates and existing franchisees, distributors and licensees 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 (except as limited by the rights granted hereunder).
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.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus and its affiliates have the right to operate similar businesses under the same or other names within a franchisee's Area of Responsibility. Specifically, Aerus, its affiliates, existing franchisees, distributors, and licensees can operate existing businesses and systems, and may establish new ones, including Aerus Businesses, under similar or different names and trademarks. These businesses can offer products and services identical or similar to those offered by the franchisee. Aerus can also grant licenses or franchises to third parties to do the same within the Area of Responsibility, except as limited by the rights granted to the franchisee in the franchise agreement.
This means that while an Aerus franchisee is granted an Area of Responsibility, this area is not necessarily exclusive in the sense that Aerus or its affiliates are prevented from operating similar businesses there. The franchisee's rights are specifically limited to the operation of their franchised business according to the franchise agreement, and they do not gain any rights to other businesses or systems owned, operated, or licensed by Aerus or its affiliates. Aerus retains all rights not expressly granted to the franchisee.
This aspect of the franchise agreement is important for potential franchisees to understand. While they are granted an Area of Responsibility, they may face competition from Aerus itself, its affiliates, or other franchisees or licensees within that area. This could impact the franchisee's potential market share and revenue. It is crucial for prospective franchisees to carefully consider this non-exclusivity and its potential implications for their business before investing in an Aerus franchise.