What enforcement systems can Aerus implement for the franchise agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- D.
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, Aerus has the right to implement a system of enforcement for the franchise agreement's terms and provisions. This includes announced or unannounced compliance audits and "secret shopper" practices.
This enforcement system may involve several actions. Aerus can impose fines or penalties for certain violations or breaches of the agreement. For royalty payments, Aerus can set a minimum or fixed amount that the franchisee must pay, which could be in place of or in addition to the royalty amount specified in Schedule 3. Additionally, for sales of products, Aerus can enforce the Minimum Sales Requirement outlined in Schedule 4.
The specifics of this enforcement system, including its existence, substance, and process, are at the sole discretion of Aerus. Aerus can implement, revoke, or modify the system at any time, provided they give reasonable notice to the franchisee. This allows Aerus flexibility in how they monitor and enforce compliance with the franchise agreement, but it also means that franchisees need to stay informed of any changes to the enforcement system.
It is important for prospective franchisees to understand that Aerus retains significant control over the enforcement of the franchise agreement. Franchisees should carefully review Schedules 3 and 4, which detail royalty payments and minimum sales requirements, to fully understand their obligations and potential penalties for non-compliance. Additionally, franchisees should maintain open communication with Aerus to stay informed of any changes to the enforcement system and to address any concerns proactively.