What is an 'Approved Location' for an Aerus franchise?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
The Standard Program allows you (with our prior approval) to own and operate more than one Approved Locations on either a full-scale or limited-scale basis (Approved Locations of limited-scale can be "Satellites" or "Licensed Outlets"). Satellites are additional locations managed directly by you. Outlets are additional locations under your care and control that are managed by persons or entities contracted by you to oversee the location (each an "Outlet Licensee"). Outlet Licensees must be engaged on forms acceptable to us. You should note that some states may impose additional requirements or regulation on those relationships, in that event, Outlet Licensees would not be permitted.
Franchisees under the Associate Program are not permitted to open additional Approved Locations, Satellites or Licensed Outlets. References and descriptions of Satellites, Outlet Licensees and Licensed Outlets in this Disclosure Document are not applicable to the Associate Programs.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–15)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees participating in the Standard Program have the option, with prior approval from Aerus, to operate multiple 'Approved Locations.' These locations can be either full-scale or limited-scale. Limited-scale locations can take the form of 'Satellites,' which are managed directly by the franchisee, or 'Licensed Outlets,' which are managed by individuals or entities contracted by the franchisee, referred to as 'Outlet Licensees.'
It's important to note that Aerus requires Outlet Licensees to be engaged on forms acceptable to them. Additionally, the FDD mentions that some states may have additional requirements or regulations that could prevent the use of Outlet Licensees. Franchisees operating under the Associate Program are not permitted to open additional Approved Locations, Satellites, or Licensed Outlets. Therefore, the option to have multiple locations is exclusive to the Standard Program.
Minimum sales requirements also vary based on the franchise program. For the Standard Program, franchisees must generally sell no less than 45 Core Units per Approved Location per Quarter, plus 80% of average Gross Sales of aftermarket, labor, and parts per quarter. Associate Program franchisees generally need to sell 30 Core Units per Approved Location per Quarter, plus 80% of average Gross Sales of aftermarket, labor, and parts per quarter.
Furthermore, franchisees in both the Standard and Associate Programs must maintain a service and repair center within their Approved Location. However, Associate Program franchisees have the alternative option to contract with another Aerus Business to fulfill their service and repair obligations. This provides more flexibility for Associate Program franchisees compared to the Standard Program, which mandates an on-site service center.