What exceptions apply to Licensed Outlets regarding Approved Locations for Aerus franchisees?
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, franchisees operating under the Standard Program have the option to engage Outlet Licensees to establish Licensed Outlets within their Area of Responsibility, provided it doesn't encroach upon another franchisee's Protected Area. These arrangements require Aerus's prior written consent and must adhere to terms acceptable to Aerus, mirroring the restrictions and limitations of the Franchise Agreement.
Licensed Outlets are generally subject to the same provisions as Approved Locations, with two key exceptions. First, repair, maintenance, and warranty services can be provided at an affiliated Approved Location rather than on-site at the Licensed Outlet. Second, while Aerus typically requires prior approval of sites and leases for Approved Locations, this requirement is waived for Licensed Outlets, provided Aerus receives prompt notification of the establishment and location of the Licensed Outlet.
It's important to note that the franchisee who engages the Outlet Licensee bears sole responsibility for the Licensed Outlet, including all training and support. Aerus has no legal obligation to the Outlet Licensee but retains the right to enforce any agreements between the franchisee and the Outlet Licensee. Franchisees operating under the Associate Program are not permitted to open additional locations, Satellites, or Licensed Outlets, making these provisions inapplicable to them.