How does Aerus define 'Affiliate' in the context of the franchise agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, an 'Affiliate' is defined as any entity or person that directly or indirectly controls, is controlled by, or is under common control with another referenced person or entity. This definition is important for prospective franchisees as it clarifies the scope of Aerus's corporate relationships and how those relationships may impact the franchise agreement.
This definition has several implications for an Aerus franchisee. It means that Aerus can have other related businesses or individuals that could potentially impact the franchisee's operations. For example, Aerus's affiliates could be involved in supplying products or services to the franchise, or they could be operating similar businesses in the same area. The franchisee agreement also states that Aerus and its affiliates retain all rights not expressly granted to the franchisee, which could allow them to engage in activities that compete with the franchisee's business, subject to any limitations specified in the agreement.
Understanding the definition of 'Affiliate' is crucial for a franchisee to assess potential conflicts of interest and competitive pressures. It is also important for understanding the scope of Aerus's network and the potential resources and support that may be available through these affiliated entities. Prospective franchisees should carefully review the franchise agreement and related documents to understand the specific rights and obligations of Aerus and its affiliates, as well as any limitations on their activities that could impact the franchisee's business.
In summary, the definition of 'Affiliate' in the Aerus franchise agreement is a standard legal term that defines the scope of related entities that could have an impact on the franchisee's business. Franchisees should be aware of this definition and its implications for their operations and competitive landscape.