What documentation regarding the franchisee's organization is Aerus entitled to review before the execution of the Franchise Agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
B. If a business entity:
- (1) Franchisee is duly organized and validly existing under the law of the jurisdiction of its formation and is duly qualified and authorized to do business in each jurisdiction in which the Franchised Business will operate;
- (2) Franchisee's charter documents currently provide and will at all future times provide that Franchisee's activities shall be confined exclusively to the ownership and operation of an Aerus Business, unless Company otherwise consents in writing;
- (3) Franchisee has provided to Company for review certified copies of its articles of organization or other charter documents, any amendments thereto, resolutions of its Board of Directors or Board of Managers, or consent of its limited partners, authorizing and consenting to entry into and performance of this Agreement, and any certificates, buy-sell agreements or other documents restricting the sale or transfer of equity of the entity, and any other documents as Company may reasonably require prior to the execution of this Agreement;
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, if the franchisee is a business entity, Aerus requires specific documentation for review before the Franchise Agreement is executed. This includes certified copies of the franchisee's articles of organization or other charter documents, along with any amendments. Aerus also requires resolutions from the Board of Directors or Board of Managers, or consent from limited partners, that authorize entering into and performing the Franchise Agreement.
Additionally, Aerus needs any certificates, buy-sell agreements, or other documents that restrict the sale or transfer of equity within the entity. This comprehensive review ensures that the franchisee is properly authorized and organized to operate an Aerus Business. Aerus also retains the right to request any other documents it reasonably requires before the agreement is finalized.
This requirement ensures that Aerus is dealing with a legitimate and properly authorized business entity, reducing the risk of future legal or operational complications. Prospective franchisees should be prepared to provide all necessary documentation promptly to avoid delays in the franchise approval process. Franchisees should also be aware that their charter documents must confine their activities exclusively to the ownership and operation of an Aerus Business, unless Aerus provides written consent otherwise.