factual

What is the definition of 'Approved Customers' for an Aerus franchise?

Aerus Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 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.

Source: Item 23 — Receipts (FDD pages 74–305)

What This Means (2025 FDD)

According to Aerus's 2025 Franchise Disclosure Document, an 'Approved Customer' is specifically defined in Addendum A. This definition is crucial because Aerus franchisees are only authorized to sell products to 'Approved Customers' within their designated 'Area of Responsibility'.

The FDD states that an 'Approved Customer' can be one of two types: first, a non-commercial, residential buyer who purchases products for their own use. Second, a commercial buyer is considered an 'Approved Customer' if they are not designated as a 'national account' in the Aerus manuals, and if they are not involved in selling cleaning, purification, health improvement, or other similar consumer products or services. This commercial buyer must also be purchasing the products for their own use and not for resale.

This definition has significant implications for potential Aerus franchisees. It restricts the franchisee's customer base, preventing them from selling to national accounts or businesses that might resell the products. This limitation could impact the franchisee's potential revenue and requires them to focus on specific customer segments as defined by Aerus. Understanding these restrictions is essential for assessing the market potential and developing a targeted sales strategy within the 'Area of Responsibility'.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.