Does the Aerus agreement confer any rights or remedies to persons other than the franchisee, company, affiliates, officers, directors, personnel, successors, and assigns?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
(2) If Franchisee, or any Affiliate of Franchisee, owns an Approved Location, sell or lease at market rents to Company the Franchisee's business premises including any building thereon, if applicable, for the fair market value of the land and building.
(3) Sell and assign to Company any furnishings, equipment, signs, fixtures, vehicles, supplies and inventory in Franchisee's possession at the time of expiration or termination, at Franchisee's cost or fair market value, calculated in accordance with the appraisal process set forth in the Manuals, whichever is less.
(4) Sell to Company all or substantially all of any other tangible assets of the Franchised Business at Franchisee's cost or the fair market value, calculated in accordance with the appraisal process set forth in the Manuals, whichever is less.
(5) Assign and release to Company the telephone numbers used at any Approved Location.
G. Time is of the essence for all purposes of this Section.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
Based on the 2025 Aerus Franchise Disclosure Document, the franchise agreement primarily outlines the rights and obligations between the franchisee and Aerus, along with its affiliates, officers, directors, personnel, successors, and assigns. However, there are instances where third parties could be implicated or affected by the agreement.
For example, upon termination of the agreement, Aerus has the option to require the franchisee to assign any lease agreements with third parties for the approved location or equipment used in the business. Aerus can also request the franchisee to sell or lease the business premises to Aerus at market rates if the franchisee or an affiliate owns the location. Additionally, the franchisee is obligated to notify their sales representatives that their agreements are terminated and ensure they comply with the termination requirements outlined in the franchise agreement.
Furthermore, the franchisee is required to cooperate with Aerus to transfer telephone numbers used for the business to Aerus or its nominee. The franchisee must also settle outstanding debts with lessors and other trade creditors. While the core agreement is between Aerus and the franchisee, these clauses indicate that third parties such as lessors, sales representatives, and trade creditors may have their rights or obligations affected by the terms of the franchise agreement, particularly upon its termination.