factual

What are Aerus Businesses?

Aerus Franchise · 2025 FDD

Answer from 2025 FDD Document

usinesses. We refer to businesses which operate under the Standard and Associate Programs (each defined below) as "Aerus Businesses," and to the specific business that you will operate as the "Franchised Business."

The Franchise Offered

We grant to third parties the license and right to operate under 1 of 2 franchise programs, known as (i) the standard franchise program (the "Standard Program") and (ii) the associate franchise program (the "Associate Program"); each of which offer and sell certain of the Products, are identified by certain of the Marks and use certain elements of the System, all as determined from time to time by us.

The type of businesses operated under each of these programs possess each of the four following characteristics: (i) they are identified by the Marks, (ii) they are primarily engaged in the offer and sale of the Products, to either (a) non-commercial, residential buyers of the Products, or (b) commercial buyers who are not designated in the Manuals as "national accounts" and who are not engaged, and not anticipated to be engaged, in the sale of any cleaning, purification, health improvement or other consumer products or services, who, in either case, are purchasing the Products for such customer's use or consumption and not for re-sale ("Approved Customers"), (iii) they operate from one or more pre-authorized physical locations that serve as retail locations, service centers, recruiting and training centers (each, an "Approved Location"), and (iv) they operate in accordance with the System.

Although the type of businesses operated under each of the programs are similar, there are key and important differences in the programs. Associate Program franchisees may only operate from a single approved location, while Standard Program franchisees may, with our approval, open additional locations. Whether a franchisee is under the Association Program or Standard Program affects the prices at which the franchisee may sell consigned products, with Standard Program franchisees entitled to more favorable pricing. Some of the additional key differences between the programs are summarized below and are noted throughout this Disclosure Document. Unless otherwise noted in this Disclosure Document, the programs are similar.

Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–15)

What This Means (2025 FDD)

According to the 2025 Aerus Franchise Disclosure Document, Aerus Businesses operate under either the Standard or Associate Programs and share four key characteristics. These businesses are identified by the Aerus Marks and primarily sell Aerus products to non-commercial, residential buyers or to specific commercial buyers who are not national accounts and who will use the products themselves rather than resell them. Aerus Businesses operate from pre-authorized physical locations that serve as retail locations, service centers, and recruiting and training centers, and they must operate in accordance with the Aerus System.

While both Standard and Associate Program businesses share these characteristics, there are important differences between them. Associate Program franchisees are limited to a single approved location, while Standard Program franchisees can open additional locations with Aerus's approval. This flexibility allows Standard Program franchisees to expand their operations more readily than Associate Program franchisees.

Another key difference lies in product pricing; Standard Program franchisees receive more favorable pricing on consigned products compared to Associate Program franchisees. This can impact profitability and sales strategies for franchisees in each program. The FDD also notes that Standard Program franchisees may open additional locations on either a full-scale or limited-scale basis, with limited-scale locations being either Satellites or Licensed Outlets. Satellites are managed directly by the franchisee, while Outlets are managed by contracted Outlet Licensees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.