Besides the franchisee and Aerus, who else is intended to have rights or remedies under the Aerus agreement?
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)
Based on the 2025 Aerus Franchise Disclosure Document, other parties besides the franchisee and Aerus that may have rights or remedies under the franchise agreement include Aerus's affiliates and existing franchisees, distributors, and licensees. According to Item 23, Aerus's 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).
This means that while a franchisee is granted the right to operate an Aerus Business, this right is specifically for the operation of the franchised business in accordance with the agreement. The franchisee does not gain rights to any other business or system owned, operated, or licensed by Aerus or its affiliates. Aerus and its affiliates retain all rights not expressly granted to the franchisee in the agreement.
This clause protects Aerus's existing business operations and future expansion plans, allowing them to operate or license similar businesses, even within the franchisee's area, subject to the specific rights granted in the franchise agreement. A prospective franchisee should carefully consider the implications of this clause, understanding that Aerus retains considerable freedom to operate and expand, potentially in competition with the franchisee, within the same area.