What is the definition of 'Outlet Licensee' in the context of an Aerus franchise?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
the Consigned Products and all spare parts which must be purchased from Company, and as otherwise provided herein, Franchisee must obtain such items from Company or from suppliers who Company has authorized in writing, and who Company has not thereafter rejected, prior to any purchases.
- H. Provide prompt and workmanlike care and service, including service under any warranty offered by Company, to all Approved Customers who have purchased Products from Franchisee or through Franchisee's Sales Representatives or Outlet Licensees, to all other owners of Products residing within the Area of Responsibility or who may appear personally (or otherwise contact the Franchised Business) at an Approved Location, and to all owners of products (other than the Products) which may be designated from time to time by Company, whether or not the Products to be serviced were purchased from or through Franchisee, and in order to fully discharge and perform this obligation, Franchisee shall establish and maintain a service and repair center (in accordance with the Manuals) in all Approved Locations (provided that Satellites and Licensed Outlets shall not be required to maintain an on-site service and repair center so long as repair, maintenance and warranty services can be adequately and timely provided from another affiliated Approved Location).
- I. Fulfill or cause to be fulfilled any and all promises and commitments made to Approved Customers by Franchisee, and any of its Outlet Licensees, Sales Representatives, employees or agents.
- J.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
Based on the 2025 Aerus Franchise Disclosure Document, an 'Outlet Licensee' is referenced within the context of the franchisee's obligations and relationships with other parties involved in the business. While the document does not provide an explicit definition of 'Outlet Licensee,' it outlines several implications for franchisees concerning these licensees.
Specifically, Aerus franchisees must fulfill promises made to customers by their Outlet Licensees. Upon termination of the franchise agreement, franchisees are required to notify all Outlet Licensees that any licenses or agreements are terminated and ensure they also take steps to discontinue operations. This indicates that Outlet Licensees operate under some form of agreement or license granted by the franchisee, suggesting a tiered structure within the Aerus franchise system.
Furthermore, the FDD mentions that franchisees must provide service to customers who purchased products through the franchisee's Outlet Licensees. This implies that Outlet Licensees are involved in the sales process, acting as a channel through which Aerus products reach customers. The franchisee bears responsibility for the actions and commitments of these Outlet Licensees, highlighting the importance of carefully managing these relationships to maintain customer satisfaction and uphold the Aerus brand standards. Prospective franchisees should seek clarification from Aerus regarding the specific roles, responsibilities, and agreements associated with Outlet Licensees to fully understand this aspect of the franchise operation.