Where is 'Company' defined within the Aerus FDD?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
[NOTE: ALL OF THE FRANCHISEE'S PRINCIPALS ARE TO EXECUTE THE GUARANTY AT ATTACHMENT A.]
ADDENDUM A
DEFINED TERMS AND PHRASES
A. "Administration and Technical Support Fee" means the fee paid by Franchisee to Company, in an amount specified in Schedule 3 attached hereto, for administration and technical support services Company shall provide to Franchisee hereunder.
B. "Aerus Business" means a business which possesses each of the following four (4) characteristics: (i) it is identified by the Proprietary Marks, (ii) it is exclusively engaged in the offer and sale of Proprietary Products to Approved Customers, (iii) it operates from one or more Approved Locations that serves as a retail location, service center and sales force instruction and training center, and (iv) it operates in accordance with the Proprietary System.
C. "Affiliate" means any entity or person that is, directly or indirectly, controlled by, controlling or under common control with a referenced person or entity.
D. "Agreement" has the meaning assigned in the Preamble.
E. "Application Fee" means the fee, in an amount specified in Schedule 3 attached hereto, paid to Company by any person or entity applying to become an Aerus franchisee.
F. "Approved Customer" means either (a) a non-commercial, residential buyer of Products, or (b) a commercial buyer of Product who is not designated as a "national account" in the Manuals and who is 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, is purchasing the Products for such customer's use or consumption and not for re-sale.
G. "Approved Name" has the meaning assigned in Section 1.B.
H. "Area of Responsibility" has the meaning assigned in Section 1.A.
I. "Approved Location" means the approved location or locations of the Franchised Business identified on Schedule 1, attached hereto, or such other location as Company may, at its option, subsequently approve and permit in writing.
J. "Beyond Products" has the meaning assigned in Recital C.
K. "Company" has the meaning assigned in the Preamble.
[Item 23: Receipts]
Notes to Financial Statements December 31, 2024
Note 1 – Organization
Organization and Nature of Operations
Aerus Franchising, LLC (the "Company" (a Delaware limited liability company), was formed on May 2, 2001 for the purpose of franchising certain former branch locations of Aerus, LLC. The Company is owned 99% by Aerus, LLC with the other 1% owned by members of Aerus, LLC management. The Company earns franchise fees and royalties through a network of approximately 171, 210, and 222 franchised locations as of December 31, 2024, 2023, and 2022, respectively, which sells products supplied primarily by Aerus, LLC.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the term "Company" is defined in two places. First, Addendum A defines "Company" as having the meaning assigned in the Preamble of the franchise agreement. Second, Note 1 to the Financial Statements defines "Company" as Aerus Franchising, LLC, a Delaware limited liability company formed on May 2, 2001, for the purpose of franchising certain former branch locations of Aerus, LLC. The company is 99% owned by Aerus, LLC with the other 1% owned by members of Aerus, LLC management.
This dual definition clarifies the legal entity granting the franchise and its relationship to the broader Aerus, LLC. The note to the financial statements provides additional context by detailing the company's formation date, business purpose, and ownership structure. This information can be useful for a prospective franchisee to understand the history and background of the company they are franchising with.
It is important to note that the financial statements also indicate that Aerus Franchising, LLC earns franchise fees and royalties through a network of franchised locations, which sell products supplied primarily by Aerus, LLC. As of December 31, 2024, there were approximately 171 franchised locations. This highlights the reliance of Aerus Franchising, LLC on Aerus, LLC for product supply and the importance of the franchise network for generating revenue.