What factors influence the size and shape of an Aerus Area of Responsibility?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
The specific street address of the Franchised Business location will be provided in the Franchise Agreement. You will be granted certain rights to an area located in and/or around your Franchised Business. This is called the Area of Responsibility. The Area of Responsibility is not a set distance for all Franchised Businesses and will vary depending on the Program you choose to operate under, and the demographic and geographic nature of your location. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Under the Standard Program and the Associate Program, the Franchise Agreement grants to you the limited right to offer and sell Products (other than the Beyond Products) to Approved Customers within the Area of Responsibility. Franchisees who sign a Beyond Addendum will also
have the limited right to offer and sell Beyond Products to Approved Customers within the Area of Responsibility. Franchisees who do not sign a Beyond Addendum have no rights to offer and sell Beyond Products.
The Franchised Business will be operated out of and from one or more Approved Locations and from no other physical location, except as may be permitted by us in writing, and you must cause any premises lease covering any Approved Location to include a Lease Rider in the form attached to the Franchise Agreement and included in Exhibit 2(a) or Exhibit 2(b) of this Disclosure 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.
Source: Item 12 — Territory (FDD pages 43–47)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the Area of Responsibility granted to a franchisee is not a fixed distance and varies based on several factors. These factors include the specific program the franchisee operates under (Standard or Associate Program) and the demographic and geographic characteristics of the location. It is important to note that Aerus franchisees do not receive an exclusive territory, meaning they may face competition from other franchisees, company-owned outlets, or other distribution channels controlled by Aerus.
Under the Standard and Associate Programs, franchisees have the right to offer and sell Products (excluding Beyond Products unless a Beyond Addendum is signed) to Approved Customers within their Area of Responsibility. The franchise must be operated from an Approved Location, and any lease for that location must include a Lease Rider as specified in the Franchise Agreement. Standard Program franchisees, with prior written consent from Aerus, can engage Outlet Licensees to establish Licensed Outlets within their Area of Responsibility, provided these outlets do not encroach on another franchisee's Protected Area.
Prospective franchisees should carefully consider these factors, as the Area of Responsibility directly impacts their potential customer base and competitive landscape. Understanding the program requirements and the demographic and geographic nature of the location is crucial for assessing the viability of the franchise. Additionally, franchisees should be aware of the potential for competition from various sources and the limitations on selling products outside their designated Area of Responsibility, with a maximum of 10% of gross sales permitted from outside the area.