What agreement governs the Aerus Consignee's franchised business operations?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Consignee and Company ("Aerus Franchising") have entered into the Franchise Agreement, which agreement governs the operations by Consignee of a franchised business engaged in, among other things, the sale of certain consigned products and other related products and services as permitted by, and more particularly described in, the Franchise Agreement;
NOW, THEREFORE, for and in consideration of the premises and promises set forth herein and in the Franchise Agreement, and other good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, Company and Consignee agree as follows:
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the Franchise Agreement governs the operations of the Consignee's franchised business. This agreement details the Consignee's operation of a franchised business, including the sale of consigned products and related services, as permitted and described within the Franchise Agreement itself.
The Consigned Products Security Agreement is executed simultaneously with the Franchise Agreement. Aerus retains full legal and equitable title to the Consigned Products. The Consignee grants Aerus a security interest in the Consigned Products and all proceeds from their sale to secure payment of amounts due to Aerus. The Consignee is responsible for the costs of filing and recording the agreement and related financing statements.
The Consignee must operate the Franchised Business to achieve optimum sales, and if the Franchisee is a business entity, its activities must be confined exclusively to the ownership and operation of an Aerus Business, unless Aerus consents otherwise in writing. The Franchisee must also adhere to specific guidelines regarding the use of trade names, trademarks, and service marks, and cannot sell products or services that are not Products without Aerus's approval.