Who has the discretion to implement, revoke, or modify the Aerus enforcement system?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limiting or restricting Company's right to terminate this Agreement at any time as provided herein, Company may implement a system of enforcement of the terms and provisions of this Agreement (including without limitation announced or unannounced compliance audits and "secret shopper" practices), which system may result in deferral of termination under certain circumstances and include any one or more of the following: (1) the imposition of fines or penalties associated with certain violations or breaches; (2) in the case of a royalty, impose a minimum or fixed amount to be paid in place of or in addition to the amount provided in Schedule 3 attached hereto; or (3) in the case of sales of the Products, impose the Minimum Sales Requirement set forth in Schedule 4 attached hereto.
The existence, substance and process of any such system would be the sole and exclusive discretion of Company and may be implemented, revoked or modified (upon reasonable notice to Franchisee) at any time and from time to time.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the company has sole and exclusive discretion over the enforcement system. This system is designed to ensure franchisees comply with the terms and provisions outlined in the franchise agreement.
Aerus retains the right to implement, revoke, or modify this enforcement system at any time, provided they give reasonable notice to the franchisee. This includes the ability to conduct announced or unannounced compliance audits and employ "secret shopper" practices to monitor adherence to the agreement.
The enforcement system may involve imposing fines or penalties for violations, setting minimum or fixed royalty amounts, or establishing minimum sales requirements. This wide latitude granted to Aerus means franchisees must be prepared for potential changes in enforcement policies and should maintain open communication with the franchisor to stay informed of any modifications.