Who, besides the franchisee, is intended to have rights or remedies under the Aerus franchise 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.
Company reserves the right to provide new products and services under the System, and to require or permit new products and services to be provided, marketed, promoted, distributed or sold hereunder by Franchisee through the Franchised Business, and may, in connection therewith, without limitation (1) require Franchisee to execute an additional or supplemental agreement and (2) require the payment of a royalty.
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 grants rights and imposes obligations on the franchisee and Aerus. However, Aerus retains significant rights, and its affiliates may also have certain rights.
Aerus retains all rights not expressly granted to the franchisee in the franchise agreement. This includes the right to introduce new products and services under the Aerus system, modify the assumed name under which the Franchised Business is identified and operated, establish additional franchise programs, and cease granting licenses under existing programs. Aerus also has the right to 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.
Aerus's Affiliates also retain all rights not expressly granted in the franchise agreement. Additionally, Aerus's Affiliates 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.
Prospective franchisees should carefully consider the implications of these retained rights, as they could potentially impact the franchisee's business operations and competitive landscape. It is important to seek clarification from Aerus regarding the specific rights and remedies of its affiliates and how these may affect the franchisee's rights and obligations under the franchise agreement.