Does ceasing to do business trigger immediate termination of the Aerus agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- E.
Upon expiration or termination of this Agreement, Franchisee and Franchisee's principals shall:
- (1) Immediately cease operation of the Franchised Business and any use of the Marks, Software and Administration Systems or the Customer Data for any reason or purpose; promptly remove all signs, markings, or other writings and, immediately discontinue all advertising or publicity, that tend to indicate that Franchisee is a franchisee of Company or seller of Products; and immediately discontinue all advertising or publicity and take all actions necessary to comply
with the foregoing, including instructing all publishers of any telephone directory or listing not to renew, repeat or insert any listing or advertisement using the word "Aerus", "Lux" or "Electrolux" or any other term or identifier associating Franchisee with Company.
(2) Send written notice to all Outlet Licensees and Sales Representatives with whom Franchisee has been dealing that any license granted to or agreement made with such is terminated, and that such Outlet Licensees and Sales Representatives must also take all other steps herein required of Franchisee under this Section.
(3) Cooperate with Company in perfecting an assignment of all telephone numbers used at an Approved Location in connection with the sales of Products hereunder or otherwise known or identified as numbers associated with Company, the Products or the Marks to and into the name of Company or its nominee, taking all action necessary to effect the intent of the foregoing.
(4) Immediately cause the cancellation or termination of any assumed name filings for the Approved Name or otherwise including the name "Aerus", "Lux" or "Electrolux" or any of the Marks.
(5) Immediately return to Company and Company's Affiliates all items of personal property that are then owned by Company or Company's Affiliates, including Consigned Products and any equipment and supplies to which Company or Company's Affiliates hold title.
(6) Promptly pay all sums owing to Company, Company's Affiliates, lessors and other trade creditors.
(7) Immediately deliver to Company all information (including Customer Data in physical or electronic formats) and databases described herein, and all other Confidential Information (including the Manuals) and all agreements, invoices, and any and all other materials relating to the operation of the Franchised Business in Franchisee's possession or control (including any such information or materials in the possession of any Sales Representative or Outlet Licensee), and all copies thereof.
(8) Comply with the non-competition covenants and the restrictions on Confidential Information contained herein.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, ceasing operation of the franchised business is a consequence of the termination or expiration of the franchise agreement, not a trigger for immediate termination itself. Upon termination or expiration, the franchisee must immediately cease operation of the Franchised Business and any use of the Marks, Software and Administration Systems or the Customer Data for any reason or purpose. They must also promptly remove all signs, markings, or other writings and, immediately discontinue all advertising or publicity, that tend to indicate that Franchisee is a franchisee of Company or seller of Products.
Furthermore, the franchisee is obligated to send written notice to all Sales Representatives or Outlet Licensees, with whom Franchisee has been dealing that any license granted to or agreement made with such is terminated, and that such Sales Representatives or Outlet Licensees must also take all other steps herein required of Franchisee under this Section. The franchisee must cooperate with Aerus in perfecting an assignment of all telephone numbers used at the Approved Location in connection with the sales of Products. They must also immediately cause the cancellation or termination of any assumed name filings for the Approved Name or otherwise including the name "Aerus", "Lux" or "Electrolux" or any of the Marks.
In addition, the franchisee must immediately return to Aerus and Aerus's Affiliates all items of personal property that are then owned by Aerus or Aerus's Affiliates, including Consigned Products and any equipment and supplies to which Aerus or Aerus's Affiliates hold title. The franchisee must promptly pay all sums owing to Aerus, Aerus's Affiliates, lessors and other trade creditors. Finally, the franchisee must immediately deliver to Aerus all information (including Customer Data in physical or electronic formats) and databases described herein, and all other Confidential Information (including the Manuals) and all agreements, invoices, and any and all other materials relating to the operation of the Franchised Business in Franchisee's possession or control (including any such information or materials in the possession of any Sales Representative or Outlet Licensee), and all copies thereof and comply with the non-competition covenants and the restrictions on Confidential Information contained herein.
It is important to note that Aerus retains the right to terminate the agreement under various circumstances as detailed in the FDD, and may implement enforcement systems that could defer termination under certain conditions, such as imposing fines or penalties for violations. However, simply ceasing operations is what the franchisee must do after the agreement has expired or been terminated.