comparative

What are the differences in the franchisor's assistance provided by Aerus (Item 11) and how do these differences relate to the franchisee's obligations (Item 9)?

Aerus Franchise · 2025 FDD

Answer from 2025 FDD Document

ISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING**

Except as listed below, we are not required to provide you with any assistance.

Pre-Opening Obligations: Before you open your Franchised Business:

    1. We will provide to you a copy of the Manuals prior to the Opening Date during the initial training. (Franchise Agreement Section 1).
    1. We will identify any modifications or improvements to the premises of any Approved Location, if any, which you must make at your expense. (Franchise Agreement Section 1).
    1. Upon receipt of your order, we will provide you an initial inventory of Consigned Products, parts, accessories and supplies in the amounts that you request, when you place and order and pay the requisite Security Deposit. You are responsible for payment of all shipping and handling charges incurred in connection with the shipment. (Franchise Agreement Section 10).
    1. We, or one of our affiliates, will sell to you certain assets (if you are purchasing an existing Aerus Business) to be used in connection with the Franchised Business. (Franchise Agreement Section 1).
    1. We, or one of our affiliates, will sublease the premises or assign the Premises Lease of an Approved Location to you (if you are purchasing an existing Aerus Business). (Franchise Agreement Section 1).

Continuing Obligations: During the operation of your Franchised Business:

    1. We and our designated suppliers will replenish your initial inventory of Consigned Products and other Products, parts, accessories and supplies according to the terms and conditions contained in the Manuals or otherwise in writing, so long as you are compliant with the Franchise Agreement and pay the requisite Security Deposits. You must promptly pay all shipping and handling charges incurred in connection with such replenishment. (Franchise Agreement, Section 10).
    1. We will provide you with revisions and modifications to the Manuals. (Franchise Agreement Section 1).

Advertising

Except as described in this Disclosure Document and in the Franchise Agreement and the Manuals, we do not conduct for your benefit or require you to participate in any group advertising program.

You must make all commercially reasonable efforts to advertise and promote the Franchised Business in the Area of Responsibility, expending an amount equal to at least the Minimum Local Advertising Fee described in this Disclosure Document. You must submit samples of all advertising and promotional materials to us for approval prior to its use. No advertisement or promotional material may be placed outside the Area of Responsibility, and you may not conduct any national or international advertising of any kind, including any internet advertising (except in very limited circumstances and subject to our written approval). You must advertise at all times in the manner designated by us in the Manuals or otherwise in writing, using formats approved by us in advance; provided, that we may require that all such advertising be placed by us or a third party designated by us, and at your expense. (Franchise Agreement, Section 11).

We are not obligated to spend any amount on advertising in your Area of Responsibility. We may in the future establish a System Media Fund (the "System Media Fund"). If we establish the System Media Fund, you (and other franchisees with your franchise program) would be required to contribute up to 3% of Gross Sales to the System Media Fund. (Franchise Agreement, Addendum B). In addition:

    1. We or a designee will have the right to direct all advertising programs, as well as all aspects of any System Media Fund, including the concept, materials, and media used in the programs and the placement and allocation of the programs. The System Media Fund is intended to maximize the general public's recognition of the Marks and the Programs; and we and our designee are not obligated, in administering the System Media Fund, to make expenditures for you which are equivalent or proportionate to your contribution, to ensure that any particular franchisee benefits directly or pro rata from expenditures by the System Media Fund, or to expend any particular amount of money in your Area of Responsibility.
    1. The System Media Fund will be used only (except as otherwise provided below) to meet any and all costs of maintaining, administering, directing, conducting, creating, and/or otherwise preparing advertising, marketing, public relations and promotional programs and materials, and any other activities that we believe will enhance the image of the Programs.
    1. We have the right to use System Media Fund contributions to, among other things, prepare and/or conduct media advertising campaigns, social media campaigns, direct mail advertising, marketing surveys and other public relations activities;

What This Means (2025 FDD)

According to Aerus's 2025 Franchise Disclosure Document, Item 11 outlines the assistance Aerus provides to franchisees, while other Items, such as Item 23, detail the franchisee's obligations. Aerus's assistance is divided into pre-opening and continuing obligations. Before opening, Aerus provides a copy of the manuals during initial training, identifies necessary modifications to the premises, provides an initial inventory of consigned products upon order and security deposit, and may sell certain assets or sublease/assign premises if purchasing an existing Aerus business. The franchisee is obligated to pay for premises modifications and all shipping and handling charges for the initial inventory.

During the operation of the franchised business, Aerus and its suppliers replenish the inventory of consigned products and provide revisions to the manuals, provided the franchisee complies with the Franchise Agreement and pays the required security deposits. The franchisee is responsible for promptly paying all shipping and handling charges for inventory replenishment. However, Aerus does not conduct or require participation in any group advertising program beyond what is described in the Disclosure Document, Franchise Agreement, and Manuals.

In contrast, the franchisee has several obligations, including using their best efforts to develop a sales organization, ethically advertise and sell products, provide prompt and workmanlike care and service under any Franchisor Consumer Warranty, fulfill all promises made to customers, and resolve customer complaints. The franchisee must also report any improper sales or purchases of products. These obligations ensure that the franchisee operates the business according to Aerus's standards and protects the brand's reputation, while Aerus provides support through inventory, training, and manual updates.

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.