Can the conduct of an Aerus franchisee's Outlet Licensees, Sales Representatives, employees, agents or representatives affect the Franchise Agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | (i) you | | | | or any of your Outlet Licensees, Sales Representatives, | | | | employees, agents or representatives, makes any material | | | | misrepresentations or misstatements to, about or | | | | concerning us or the Products; (j) you or any of your | | | | Outlet Licensees, Sales Representatives, employees, | | | | agents or representatives, engages in any conduct that | | | | reflects materially and unfavorably upon the operation and | | | | reputation of us or the Products; (k) you cease to do | | | | business; (l) you or any guarantor becomes insolvent; | | | | (m) any provisions of the Franchise Agreement | | | | concerning the protection of the Marks is determined in | | | | any manner to be null, void or unenforceable; (n) you fail, | | | | refuse or neglect to pay any monies owing to us or our | | | | affiliates when due under the Franchise Agreement or any | | | | other agreement or to submit to us the financials or other | | | | information required by us and do not cure such failure, | | | | refusal or neglect within five (5) business days following | | | | notice from us; (o) if you or any of your Sale | | | | Representatives or Outlet Licensees violates or breaches | | | | any other provision of the Franchise Agreement or fails to | | | | satisfy any other of its non-monetary obligations, | | | | including but not limited to the Standards of Conduct | | | | noted in this Section of the Franchise Agreement, and do | | | | not cure such violation, breach or failure within fifteen | | | | (15) days after receiving notification from us of such | | | | violation, breach or failure; (p) you fail to meet the | | | | Minimum Sales Requirements for two (2) consecutive | | | | calendar quarters; (q) you or any of your Sales | | | | Representatives, Outlet Licensees, employees, agents or | | | | representatives is found to have offered, promoted, | | | | advertised or sold any Product by, through or on the | | | | Internet (except for any Company-created, | | | | Company-sponsored or Company-approved webpage); | | | | (r) you violate the advertising or promotion provisions of |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 56–60)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the actions of an Aerus franchisee's Outlet Licensees, Sales Representatives, employees, agents, or representatives can indeed affect the Franchise Agreement. Specifically, if these individuals make any material misrepresentations or misstatements about Aerus or its products, it can be grounds for consequences under the agreement. Similarly, if they engage in any conduct that reflects materially and unfavorably upon the operation and reputation of Aerus or its products, this can also have repercussions for the franchisee.
Furthermore, the FDD states that if the franchisee, or any of their Sales Representatives or Outlet Licensees, violates or breaches any other provision of the Franchise Agreement or fails to satisfy any other of its non-monetary obligations, including but not limited to the Standards of Conduct noted in this Section of the Franchise Agreement, and do not cure such violation, breach or failure within fifteen (15) days after receiving notification from Aerus, this can also affect the agreement. Additionally, if the franchisee or any of their Sales Representatives, Outlet Licensees, employees, agents or representatives is found to have offered, promoted, advertised or sold any Product by, through or on the Internet (except for any Company-created, Company-sponsored or Company-approved webpage) this can also affect the agreement.
These stipulations highlight the importance of franchisees ensuring that all individuals associated with their Aerus business are well-trained and adhere to the standards and guidelines set forth in the Franchise Agreement. Franchisees should implement measures to monitor and control the conduct of their staff and representatives to safeguard their franchise agreement and maintain the reputation of the Aerus brand. This also extends to ensuring compliance with advertising and promotional guidelines, especially regarding online sales and marketing activities.