What is the condition for Aerus to not require prior approval of the site or lease for any Licensed Outlet?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Standard Program, and only upon our prior written consent, you may be permitted to engage Outlet Licensee to establish, on a non-exclusive basis, Licensed Outlets within those parts of your Area of Responsibility that do not include any part of another franchisee's Protected Area The forms (and terms) used to engage Outlet Licensees must be acceptable to us and may not grant greater rights and must include at least the same restrictions and limitations as the Franchise Agreement. Licensed Outlets must be subject to all provisions of the Franchise Agreement and the Manuals concerning Approved Locations, except that (i) repair, maintenance and warranty service may be provided by or at an affiliated Approved Location rather than on-site and, (ii) provided that, so long as we receive prompt notice of the establishment and location of a Licensed Outlet, we will not require prior approval of the site or lease for any Licensed Outlet. Outlet Licensees will be solely and exclusively the responsibility of you for all purposes, including without limitation, all training and support. We will have no legal obligation whatsoever to or for the benefit of any Outlet Licensees; however, we will be a beneficiary of any of your rights under all agreements existing between you and any Outlet Licensees and may enforce such rights.
Franchisees under the Associate Program are not permitted to open additional locations, Satellites or Licensed Outlets. References and descriptions of Outlet Licensees and Licensed Outlets in this Disclosure Document are not applicable to the Associate Program.
Source: Item 12 — Territory (FDD pages 43–47)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, under the Standard Program, franchisees may engage Outlet Licensees to establish Licensed Outlets within their Area of Responsibility, excluding any part of another franchisee's Protected Area, but only with Aerus's prior written consent. The agreement with the Outlet Licensee must be acceptable to Aerus, not grant greater rights than the Franchise Agreement, and include at least the same restrictions.
Licensed Outlets must adhere to all provisions of the Franchise Agreement and Manuals concerning Approved Locations. However, there are two exceptions: repair, maintenance, and warranty service may be provided by or at an affiliated Approved Location rather than on-site, and Aerus will not require prior approval of the site or lease for any Licensed Outlet, provided that Aerus receives prompt notice of the establishment and location of the Licensed Outlet.
This means that while franchisees typically need Aerus's approval for site and lease agreements, this requirement is waived for Licensed Outlets if Aerus is promptly informed about the outlet's establishment and location. This streamlined process could benefit franchisees by allowing them to quickly set up additional sales points without waiting for formal approval, as long as they keep Aerus informed. However, it's important to note that this exception applies only to the Standard Program, as franchisees under the Associate Program are not permitted to open additional locations, Satellites, or Licensed Outlets.