Can Aerus establish other businesses under the same trademarks as the Marks within a franchisee's Area of Responsibility?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing and without limiting the generality of the provisions contained in this Section, Franchisee acknowledges that Company and its Affiliates and existing franchisees, distributors and licensees operate existing businesses and systems, and may in the future establish and operate new businesses and systems, including Aerus Businesses, under the same and other assumed names, trade names and trademarks as the Marks, which businesses and systems may offer or sell products and services similar or identical to the Products, and may do so (or grant licenses or franchises for third-parties to do so) within any part of the Area of Responsibility (except as limited by the rights granted hereunder).
The right granted under this Agreement is only for the operation of the Franchised Business in accordance with this Agreement.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus retains the right to establish and operate new businesses and systems, including Aerus Businesses, under the same trademarks as the Marks within a franchisee's Area of Responsibility. This includes offering or selling similar or identical products and services. Aerus can also grant licenses or franchises to third parties to do so within the franchisee's Area of Responsibility, except as limited by the rights granted to the franchisee in the franchise agreement.
This means that while a franchisee is granted the right to operate an Aerus franchise within a specific area, Aerus itself is not restricted from opening its own competing businesses or licensing others to do so in the same area. The franchisee's rights are specifically limited to the operation of their franchised business under the agreement, and they do not gain any rights to other businesses or systems owned or licensed by Aerus.
This lack of exclusivity could pose a risk to the franchisee, as Aerus or its licensees could potentially draw customers away from the franchisee's business. It is important for a prospective franchisee to understand the extent to which Aerus might compete with its own franchisees and to evaluate the potential impact on their business. A prospective franchisee should inquire about Aerus's plans for expansion in their Area of Responsibility and the potential for competition from other Aerus businesses or licensees.