What is the exception to the Approved Locations provisions for Aerus Licensed Outlets regarding site or lease approval?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Standard Program, and only upon our prior written consent, you may be permitted to engage Outlet Licensee to establish, on a non-exclusive basis, Licensed Outlets within those parts of your Area of Responsibility that do not include any part of another franchisee's Protected Area The forms (and terms) used to engage Outlet Licensees must be acceptable to us and may not grant greater rights and must include at least the same restrictions and limitations as the Franchise Agreement. Licensed Outlets must be subject to all provisions of the Franchise Agreement and the Manuals concerning Approved Locations, except that (i) repair, maintenance and warranty service may be provided by or at an affiliated Approved Location rather than on-site and, (ii) provided that, so long as we receive prompt notice of the establishment and location of a Licensed Outlet, we will not require prior approval of the site or lease for any Licensed Outlet. Outlet Licensees will be solely and exclusively the responsibility of you for all purposes, including without limitation, all training and support. We will have no legal obligation whatsoever to or for the benefit of any Outlet Licensees; however, we will be a beneficiary of any of your rights under all agreements existing between you and any Outlet Licensees and may enforce such rights.
Franchisees under the Associate Program are not permitted to open additional locations, Satellites or Licensed Outlets. References and descriptions of Outlet Licensees and Licensed Outlets in this Disclosure Document are not applicable to the Associate Program.
Source: Item 12 — Territory (FDD pages 43–47)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, under the Standard Program, franchisees may engage Outlet Licensees to establish Licensed Outlets within their Area of Responsibility, excluding any part of another franchisee's Protected Area, with prior written consent from Aerus. These Outlet Licensees must adhere to the Franchise Agreement and Manuals concerning Approved Locations. However, there's an exception: Aerus does not require prior approval of the site or lease for any Licensed Outlet, provided they receive prompt notice of the establishment and location of the Licensed Outlet.
This exception offers a streamlined process for franchisees looking to expand their reach through Licensed Outlets. By waiving the prior approval requirement for site or lease, Aerus allows for quicker establishment of these outlets, reducing potential delays and administrative burdens. However, it's crucial to note that this exception is contingent on providing prompt notification to Aerus about the establishment and location of the Licensed Outlet.
It's important to remember that the franchisee remains solely responsible for the Outlet Licensees, including their training and support. Aerus bears no legal obligation to these licensees but retains the right to enforce any agreements between the franchisee and the Outlet Licensees. This arrangement allows Aerus franchisees to grow their business while maintaining brand standards and operational consistency, with a degree of autonomy in site selection for Licensed Outlets, so long as Aerus is kept informed.
Franchisees operating under the Associate Program are not permitted to open additional locations, Satellites, or Licensed Outlets. Therefore, this exception regarding site or lease approval applies exclusively to franchisees participating in the Standard Program.