Does the Aerus agreement intend to constitute either party an agent, legal representative, affiliate, joint venturer, partner, employee, joint employer or servant of the other?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall be permitted, at its own cost and expense, to hire and retain such employees, consultants and agents as Franchisee may deem necessary in establishing and operating the Franchised Business.
Additionally, Franchisee shall be permitted to employ or engage, on forms reasonably acceptable to Company and which grant no greater rights and retain at least the same restrictions and limitations as this Agreement, Sales Representatives who shall operate in accordance with this Agreement and the Manuals, including the Policies and Procedures.
Franchisee shall have sole authority and discretion regarding all employment matters, including without limitation, hiring, firing, discipline, compensation, benefits and scheduling.
Notwithstanding the generality of the foregoing, Company may from time to time set minimum staffing requirements and hours of operation for Approved Locations in the Manuals.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
Based on the 2025 Aerus Franchise Disclosure Document, the franchisee is responsible for hiring and managing their own staff. Aerus franchisees can hire employees, consultants, and agents as needed to run their business. The franchisee has complete control over employment matters, including hiring, firing, and setting compensation and schedules. Aerus may set minimum staffing requirements and hours of operation in the manuals. This indicates that the Aerus franchise agreement is structured to maintain an independent contractor relationship between Aerus and its franchisees, rather than creating an employer-employee or agency relationship.
This arrangement is typical in franchising, where franchisees operate independently under the franchisor's brand and system. The franchisee's ability to hire and manage their own employees reinforces this independence. However, Aerus retains some control by setting minimum staffing requirements and hours, ensuring a consistent customer experience across all locations.
Prospective franchisees should understand that they are responsible for all employment-related costs and liabilities. They should also be prepared to manage their staff effectively to meet Aerus's standards and comply with all applicable laws. This independence offers flexibility but also requires strong management skills and a thorough understanding of employment law.